5 May 2006
HAYS PLC
ACQUISITION OF ST GEORGE'S HARVEY NASH LTD
Hays plc today announces the acquisition of St George's Harvey Nash Ltd, a
specialist recruitment business providing executive search and selection
services in the People's Republic of China and Hong Kong.
Highlights
Hays believe that the People's Republic of China and South East Asia offer
substantial growth opportunities in the specialist recruitment market and this
acquisition provides a platform from which to develop our specialist
recruitment model.
The business operates from three offices in the People's Republic of China, in
Shanghai, Shenzhen and Guangzhou under a joint venture agreement with a local
Chinese partner in which Hays has the majority shareholding. The wholly owned
Hong Kong business operates from a single office.
The well-respected and highly experienced management team will remain with the
business to develop market-leading positions in the region.
The business will be fully integrated into Hays' existing operations in the
Asia Pacific region with the existing search and selection business branded as
Hays Executive.
Comments
Commenting on the acquisition, Denis Waxman, Chief Executive of Hays plc said:
"We are delighted that St George's Harvey Nash has joined the Hays Group. We
are excited by the location, quality and potential of this acquisition as well
as the strength, reputation and professionalism of the local management team.
We have identified the People's Republic of China as a highly attractive growth
market for specialist recruitment. The acquisition of St George's Harvey Nash
provides Hays with a strong platform to expand the Hays business model into the
Chinese market."
Financial
Cash consideration for 100% of the share capital was £2.3 million on a cash and
debt-free basis. A further £5.2 million will become payable on achievement of
specific growth and profitability targets over the next 4 years. In the year
ended 31 December 2005, the business generated net fees of £1.3 million and
operating profits of £0.2 million.
- ends -
Enquiries
Richard Jackson Investor Relations, Hays plc + 44 (0) 20 7628 9999
Mike Smith Brunswick + 44 (0) 20 7404 5959
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