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Recruit acquires USG People

Recruit Holdings Co., Ltd and USG People N.V have jointly announced that they have reached a conditional agreement on a merger protocol. This is related to a recommended all cash offer by Recruit for all issued ordinary shares of USG People at an offer price of € 17.50 per ordinary share. 


The offer price represents a 31% premium over the closing price of 21st December 2015, a 31% premium over USG People’s 3-month volume weighted average price (“VWAP”) and a 41% premium over USG People’s 12 month VWAP preceding 21st December 2015.  The offer represents an equity value for USG People of € 1.42bn and an enterprise value of € 1.61bn, valuing USG People at 16.0x Enterprise Value / EBITA over the last twelve months.


Masumi Minegishi, chairman of the Board of Directors and chief executive officer of Recruit, said, “Recruit’s midterm vision is to become the world leader in human resources by around 2020, in terms of number of positions filled. To achieve this, we are seeking to grow our business platforms in Japan and abroad organically and through acquisitions. The acquisition of USG People is perfectly aligned with this strategy. Recruit has proven its ability to drive profitable growth through mergers and the Board of Directors is deeply committed to supporting the continuation of this journey. Following our acquisitions in the United States, the United Kingdom and Australia we are now taking the next step by entering the continental European market. We are excited by USG People, which we see as a strong business that operates fantastic brands and has a deep understanding and expertise of the markets it operates in. Together with USG People, we aim to become a recognised industry leader in Europe. The time has now come to take another significant step forward. We see great long-term potential in combining USG People with Recruit.”


Rob Zandbergen, chief executive officer of USG People, said, “Recruit’s offer to join forces with our organisation brings attractive perspectives for all our stakeholders. A combination with Recruit, a successful global organisation, provides the opportunity to accelerate our growth and innovation development and to strengthen our position in continental Europe considerably, all this being in the interest of our customers and employees. Together we have the ability to accelerate the execution of our strategy. Recruit and USG People share common ambitions and similar company cultures and values. Also geographically, the companies are highly complementary with no overlap with the current operations of Recruit in staffing activities, hence the current USG People organisation will serve as the basis for the realisation of our joint growth ambition in the continental European market, giving ample opportunities to USG People’s employees.”



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