27 FEBRUARY 2007
HAYS PLC
HAYS PLC ANNOUNCES THE ACQUISITION OF JAMES HARVARD
Hays plc today announces the acquisition of James Harvard International Group
Ltd and James Harvard International Asia KK (`James Harvard'). James Harvard is
a recruitment business specialising in the Pharmaceutical and Biotechnology
sectors and in the IT financial markets sector. Two thirds of the James Harvard
business is based in the United Kingdom with the remainder overseas, primarily
in Japan.
Highlights
This acquisition moves Hays into the Pharmaceutical and Biotechnology sectors,
which we believe is an attractive market with strong growth characteristics,
and significantly strengthens Hays' recruitment offering in the high end IT
financial markets sector. The acquisition will enable the roll out of James
Harvard's Pharmaceutical and Biotechnology specialist activities across Hays'
European network.
James Harvard provides Hays with an entry into Japan, which is the largest
specialist recruitment market in Asia and the third largest in the world. Hays
sees strong growth potential in the Japanese market and the sectors in which
James Harvard operates. In addition, the acquisition provides Hays with an
excellent platform to introduce Hays' core sector businesses into Japan.
Comments
Commenting on the acquisition, Denis Waxman, Chief Executive of Hays plc said:
"We are delighted that James Harvard has joined the Hays Group. The business
comes with a talented and experienced management team, which has a strong track
record of delivering significant growth and possesses solid depth in
management. Together with the James Harvard management team, Hays now has a
great opportunity to grow James Harvard's Pharmaceutical and Biotechnology
recruitment business and IT financial services recruitment business across the
Hays' international network. In addition, James Harvard's presence in Japan
gives Hays an excellent platform to introduce our core sector businesses to
this key market."
Financial
Upfront cash consideration for 100% of the share capital of James Harvard was
£24 million on a cash free and debt free basis. An estimated further
consideration of £19 million will become payable depending on achievement of
growth and profitability targets over the next 3 years. In the year ended 31
December 2006, James Harvard generated estimated net fees of £10.7 million and
estimated operating profits of £3.0 million.
- ends -
Enquiries
Hays plc
Paul Venables Finance Director + 44 (0) 20 7628 9999
Martin Abell Investor Relations + 44 (0) 20 7628 9999
Brunswick
Giles Croot / Gill Ackers + 44 (0) 20 7404 5959
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