Acquisitions in France and Netherlands
Hays PLC
7 February 2000
(£1 = Pta 276)
Acquisitions strengthen Personnel in France and Netherlands
Mail & Express operations move into Spain
Hays plc has acquired three growing specialist recruitment agencies, Sedi and
MD Concept in France and Roozen & van Hoof in the Netherlands for a total
initial cash consideration of £21.8m, net of existing cash balances acquired.
Further cash payments of up to a maximum of £6.0m may become payable
depending on the level of future profits.
In addition Hays has acquired DUN and Driver Pack - two time critical
overnight delivery businesses based in Spain, for a total initial cash
consideration of £7.7m. Further cash payments of up to a maximum of £4.3m
may become payable depending on the level of profits of DUN and Driver Pack
in the two years ending 31 December 2001.
Personnel
Sedi provides IT staff for software development, maintenance and consultancy
projects in France. Established in 1979 and based in Paris, it employs 200 IT
consultants who undertake projects for major French and international banks
and insurance companies, as well as large manufacturing and technology
businesses. In the year to 31 December 1998, Sedi had an operating profit of
FF 7.4m (£0.7m), revenue of FF 88.0m (£8.6m) and net assets, excluding cash,
of FF 4.0m (£0.4m).
MD Concept is also based in Paris and is involved in the provision of IT
staff. It has a blue-chip customer base focused on the financial services,
manufacturing and new technologies. In the year to 31 December 1998, MD
Concept had an operating profit of FF 9.0m (£0.9m), revenue of FF 71.3m
(£6.9m) and net assets, excluding cash, of FF 3.2m (£0.3m).
Roozen & van Hoof is involved in the recruitment of professional and middle
management staff to large corporate customers. Through a network of 10
offices in the Netherlands, it offers search and selection, file search,
consultancy and psychological testing services. For the year to 31 December
1998, it had an operating profit of NLG 1.0m (£0.3m), revenue of NLG 7.6m
(£2.2m) and net assets, excluding cash, of NLG 0.6m (£0.2m).
Mail & Express
DUN and Driver Pack are specialist, overnight, time-critical delivery
businesses servicing the optical, travel, medical, dental, IT and finance
sectors across Spain. Based in Barcelona and Madrid respectively, both
businesses have a first class reputation and strong customer base.
They complement Hays existing operations and support the company's strategy
of becoming a leading European specialist mail and express business operating
in niche markets.
In the year to 31 December 1998, DUN had an operating profit of Pta 62.5m
(£0.2m) and net assets, excluding cash, of Pta 526.0m (£1.9m). For the same
period, Driver Pack had an operating profit of Pta 75.0m (£0.3m) and net
assets, excluding cash, of Pta 43.2m (£0.2m). Unaudited management accounts
for the twelve months to 31 December 1999 show that DUN had an operating
profit of Pta 80.0m (£0.29m) and Driver Pack had an operating profit of Pta
87.0m (£0.31m).
Commenting on these acquisitions, Ronnie Frost, Chairman of Hays plc, said:
'Sedi and MD Concept strengthen Hays' position in the French IT contracting
sector, and complement Sitinfo which we acquired in late 1998. Both
businesses have strong technical skills, which will enhance the range of
services we offer in the French IT market.
Roozen & van Hoof is very well established in the Dutch recruitment market
and provides good geographic coverage which gives us an excellent base from
which to expand the business into new sectors.
DUN and Driver Pack represent not only new opportunities in markets familiar
to Hays Mail & Express Services, but also, they are a perfect strategic fit
which will support our overall objective of becoming the leading specialist
business of its kind throughout Europe.'
For further information, please contact:
Ronnie Frost, Chairman Hays plc 01483 302 203
Andrew Grant / Corinne Daniels Brunswick 020 7404 5959
Note to editors
Hays plc
Hays plc is a leading business to business group providing a range of added
value specialist and quality services to industrial, commercial and
professional customers throughout Europe. Activities include supply chain
management, logistics, mail services, business process outsourcing and
staffing services. Listed in 1989 and now a FTSE 100 company, Hays employs
over 24,000 people.
For more information, visit the Company's website at www.hays-plc.com
Hays Personnel
Hays Personnel is the largest specialist staff agency in the UK with a strong
presence in the Accounting, Banking, Insurance, Construction and IT sectors.
It has already established a strong presence in specialist recruitment in
Continental Europe through its agencies: Hays Alpha (Banking and Insurance
staff) and Hays Sitinfo (IT staff) in Paris, and Hays International in Prague
and Dublin. In addition the recent UK acquisition of Hutchinson Smith in
November 99 consolidated our position in specialist IT markets.
Hays Mail & Express
Under the umbrella brand of Hays DX, the company offers a range of mail and
express-related services. Hays DX is a leader in its chosen sectors in the
UK, France, Belgium and Ireland, handling the early next day delivery of
around 2.5 million items each night.
DUN employs 120 staff and around 100 sub-contracted drivers. Driver Pack has
80 staff and around 50 sub-contracted drivers. DUN has 7 branches
nationwide, and Driver Pack has 5 branches.