Hudson Highland Group Completes Sale of Its Netherlands Reintegration Subsidiary
December 20 2007 - 4:52PM
Marketwired
NEW YORK, NY today announced that it has completed the sale of
its Dutch reintegration subsidiary, Hudson Human Capital Solutions
B.V., to Workx! Holding B.V. ("Workx") for $0.7 million in cash and
up to approximately $0.3 million in earn out consideration. Workx
is controlled by the former Hudson leadership of this business.
The deal was completed on December 14, 2007. Hudson Highland
Group will record a gain on the sale of approximately $5.0 million,
including $7.4 million in accumulated foreign currency translation
gains. The company will treat the business as a discontinued
operation, effective as of December 1, 2007. Given the current size
of the reintegration business, this transaction has no material
impact on the company's guidance for the fourth quarter of
2007.
The divestiture is in line with Hudson's strategy of focusing on
specialized professional recruitment. This business trades only in
the Dutch reintegration market which helps those without employment
rejoin the labor market through innovative skills training. Changes
in Dutch legislation in recent years have led to a decline in
demand for this business line, with revenue down 40 percent in 2006
from 2005 and 22 percent in the nine months ended September 30,
2007 from the same 2006 period.
For the nine months ended September 30, 2007, this business
reported revenue of $10.8 million, gross margin of $4.9 million and
operating income of $0.2 million. For the nine months ended
September 30, 2006, this business reported revenue of $13.9
million, gross margin of $6.1 million and operating income of $0.0
million. For the nine months ended September 30, 2005, this
business reported revenue of $24.1 million, gross margin of $11.5
million and operating income of $1.6 million.
For the year ended December 31, 2006, this business reported
revenue of $18.7 million, gross margin of $8.9 million and
operating income of $1.1 million. For the year ended December 31,
2005, this business reported revenue of $30.9 million, gross margin
of $15.0 million and operating income of $2.4 million.
Hudson Highland Group
Hudson Highland Group, Inc. is a leading provider of permanent
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
www.hudson.com.
Contact: David F. Kirby Hudson Highland Group 212-351-7216 Email
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