Recruitment agency, ADECCO, announces plan to acquire German company, DIS AG, a prominent player in the field.
Adecco, a Fortune Global 500 company and the global leader in HR services, made a strategic move in January 2006 by acquiring DIS AG, the leading provider of professional staffing solutions in Germany. The acquisition was a significant step forward for Adecco, as it strengthened its competitive position in the staffing industry and expanded its market share in key European markets, particularly Germany.
The combination of DIS AG and Adecco in the German staffing market brought the company to a strong number two position. Dieter Scheiff, CEO of DIS AG, led a management team that was the best performing in the entire industry. Scheiff, a former manager at 3M and Johnson and Johnson, has served as CEO of DIS AG for the last 4 years. Dominik de Daniel, CFO of DIS AG, was also a key player in the team. Daniel, a former financial analyst at Deutsche Bank, was honored for various CFO tasks of listed companies in Germany while only 29 years old.
The acquisition was financed through a commitment secured by UBS Investment Bank, which acted as sole financial adviser and provider of the acquisition financing. Adecco paid a price of EUR 20.50 per share for DIS AG, representing a 34% premium over the share price before the announcement.
Klaus J. Jacobs, Chairman and CEO of Adecco, described the acquisition as the best since forming Adecco in 1996. The acquisition was expected to be earnings accretive to Adecco in 2006. DIS AG, founded in 1967, had been listed on the stock exchanges since 1997.
Adecco's group network connects over 700,000 associates with business clients each day, and it operates through over 6,600 offices in over 70 countries and territories. The company is registered in Switzerland (ISIN: CH0012138605) and listed on the Swiss Stock Exchange, the New York Stock Exchange, and Euronext Paris.
DIS AG operates out of six business pisions: Office Management, Industry, Finance, Information Technology, Engineering Services, and Consulting & Outsourcing. On January 9, 2006, Adecco entered into an agreement to acquire approximately 29% of DIS AG's share capital from the Paulmann family for EUR 54.50 per share. The DIS Management Board considered the offer price attractive to DIS' shareholders.
Subsequent reports from Adecco have shown steady operating profits and revenue growth, suggesting the acquisition was integrated successfully and contributed positively to the company’s ongoing performance. The acquisition significantly enhanced Adecco's earnings and market position by expanding its footprint, especially in the German staffing market, and contributed positively to Adecco's profitability and growth trajectory at the time.
[1] Source: Adecco's annual reports and financial statements.
- Adecco, a leader in HR services, expanded its market share in key European markets through the acquisition of DIS AG, a leading provider of temporary staffing solutions in Germany, in January 2006.
- The acquisition was financed through a commitment secured by UBS Investment Bank and was expected to be earnings accretive to Adecco in 2006, as it significantly enhanced Adecco's earnings and market position by contributing positively to its profitability and growth trajectory.
- DIS AG, a company listed on various stock exchanges, operates out of six business divisions including Finance, Information Technology, Engineering Services, and Consulting & Outsourcing, indicating a presence in the outsourcing industry.
