Japan's OUTSOURCING to acquire OTTO Holding BV in Netherlands
Japan-based OUTSOURCING Inc. is to acquire 56% of the shares outstanding in the Netherlands-based OTTO Holding B.V., making it a subsidiary. Excluding fees, the deal was completed at JPY 8,866m yen or €66.4m.
The OUTSOURCING Group provides human resource services for mainly engineering and manufacturing in the Japanese domestic market. In Asia, the OS Group, through its business model for training workers from countries with an abundance of workers in language, culture, customs, and mobilizing human resources for countries which have brisk workforce demand, is achieving favourable progress in earnings growth.
Under the backdrop of the EU’s characteristics of free movement of people, goods, capital and services, OTTO has carved out a certain niche position in the field of cross-border employment services mainly in the Netherlands and Poland. Ranked 8th in the industry by net sales in the Netherlands and 6th in Poland, OTTO supplies workforce to the Netherlands and Germany through its recruitment network in Central and Eastern European countries, and has also created a channel for supplying workforce from the Ukraine and Moldova to Poland through concluding labour agreements.
The OS Group entered the German market in January 2017 and is mainly engaged in dispatching business of skilled workers for manufacturing. Through synergies with the OTTO Group’s roughly 40 companies, the company is establishing a human resource recruitment network in Europe, and through promoting cross-border mobility of human resources, is accelerating business expansion not only in Europe but on a global scale.
The company is currently examining the impact from this transaction on consolidated earnings for fiscal year ending 31st December 2018, and will make prompt disclosure once the examination has been completed. In addition, the company is considering whether to establish a holding company in the Netherlands, to acquire OTTO shares through said subsidiary.
Photo courtesy of Shutterstock.com