Hudson Highland Group Completes Sale of Highland Partners to Heidrick & Struggles
October 02 2006 - 5:30PM
PR Newswire (US)
NEW YORK, Oct. 2 /PRNewswire-FirstCall/ -- Hudson Highland Group,
Inc. (NASDAQ:HHGP) today announced that it has completed the sale
of its Highland Partners executive search business to Heidrick
& Struggles International, Inc. (NASDAQ:HSII). The company
received $36.6 million in cash at the closing, subject to a net
working capital adjustment, of which the company is paying $9.55
million to partners of the business. The company may receive
payments from Heidrick of up to an additional $15 million subject
to the achievement of certain future revenue metrics by that
business in 2007 and 2008, resulting in maximum potential gross
proceeds of $51.6 million. Net proceeds at closing from the
transaction approximated $20 million, of which $14 million was used
to pay down a portion of outstanding debt. Both organizations
signed a definitive purchase agreement on September 18, 2006. "The
opportunity and timing of this transaction were right for both
Hudson and Highland Partners to move forward as successful but
separate businesses," said Jon Chait, chairman and chief executive
officer of Hudson Highland Group. "Hudson will benefit from a
tighter focus on its core service offerings in mid-level permanent
recruitment, professional staffing and talent management solutions.
Heidrick & Struggles' strong global brand, platform and network
of contacts provide Highland Partners with even greater resources
and access to the highest executive-level talent." Hudson Highland
Group Hudson Highland Group, Inc. is a leading provider of
management recruitment, contract professionals and talent
management services worldwide. From single placements to total
outsourced solutions, Hudson helps clients achieve greater
organizational performance by assessing, recruiting, developing and
engaging the best and brightest people for their businesses. The
company employs more than 3,600 professionals serving clients and
candidates in more than 20 countries. More information is available
at http://www.hhgroup.com/. Safe Harbor Statement This press
release contains statements that the company believes to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact included in this press release are
forward-looking statements. Words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "predict," "believe" and
similar words, expressions and variations of these words and
expressions are intended to identify forward-looking statements.
All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those described in the forward- looking statements. These
factors include, but are not limited to, risks and financial impact
associated with the disposition of the Highland Partners business;
the impact of global economic fluctuations on temporary contracting
operations; the cyclical nature of the company's executive search
and mid- market professional staffing businesses; the company's
ability to manage its growth; risks associated with expansion; the
company's reliance on information systems and technology;
competition; fluctuations in operating results; risks relating to
foreign operations, including foreign currency fluctuations;
dependence on highly skilled professionals and key management
personnel; the impact of employees departing with existing
executive search clients; risks maintaining professional reputation
and brand name; restrictions imposed by blocking arrangements;
exposure to employment-related claims, and limits on insurance
coverage related thereto; government regulations; and restrictions
on the company's operating flexibility due to the terms of its
credit facility. Additional information concerning these and other
factors is contained in the company's filings with the Securities
and Exchange Commission. These forward-looking statements speak
only as of the date of this press release. The company assumes no
obligation, and expressly disclaims any obligation, to review or
confirm analysts' expectations or estimates or to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Hudson Highland Group, Inc.
CONTACT: David F. Kirby, Hudson Highland Group, +1-212-351-7216,
Web site: http://www.hhgroup.com/
Copyright
Hudson Highland (NASDAQ:HHGP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hudson Highland (NASDAQ:HHGP)
Historical Stock Chart
From Jul 2023 to Jul 2024