Adecco SA Announces Agreement to Acquire Career Staff Co. Ltd of Tokyo, Japan
Acquisition of Japanese Personnel Services Concern to Boost Market Share in Japan for Global Personnel and Career Services Leader
Lausanne, Suisse, May 7, 1999
Adecco SA, the world's leading provider of personnel and career services, today announced that it had reached an agreement to acquire the outstanding stock of Career Staff Co. Ltd., of Tokyo, Japan.
With over 50 branches and sales of JPY 55 billion (USD 450 million), Career Staff is one of the largest personnel services firms in Japan. The Company was founded in 1981 and has enjoyed strong growth over the past several years. Adecco and Career Staff contemplate that the acquisition will be completed about May 31. Because of Career Staff's extensive national network and brand recognition, the combined company in Japan will be named Adecco Career Staff.
John Bowmer, Adecco's Chief Executive Officer, commented on the acquisition, saying, "We are delighted to welcome Career Staff to the Adecco Family. An important part of Adecco's global strategy is to become the number one or two staffing services firm in each of the major markets globally. By doing so, we enhance our ability to serve global clients, we become the first address to which local clients look to fill their staffing needs, and economies of scale reduce the unit costs of doing business. By joining forces with Career Staff we can achieve these strategic goals in Japan."
Ken Ono, Career Staff's President and Chief Executive Officer said, "We are very pleased to join forces with Adecco. As the dynamics of our industry evolve toward global and multinational contracts, we increasingly felt the need to become part of a global organisation. By joining with Adecco, we will be able to offer services to our multinational Japanese clients that we could not have done before."
Tohru Omoi, President of Adecco's subsidiary in Japan added, "Adecco Japan and Career staff are very complementary businesses. The combined company will rank within the top three personnel services providers in Japan. We believe that there is significant potential for cost savings, in particular by eliminating overlapping costs such as marketing and IT investments and we believe that the merger will greatly improve the combined business unit's capacity for future growth."
Combined, Adecco Career Staff will have over 60 branches in Japan and pro forma 1998 sales of about JPY 70 billion (USD 600 million). Ken Ono, President of Career Staff will become chairman of Adecco Career Staff Ltd., and Tohru Omoi, currently President of Adecco Japan, will continue as President and CEO of the combined business unit.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. The Company's actual results may differ materially from the results anticipated in these forward looking statements as a result of certain factors as set forth in the Company's reports on Form 20-F made pursuant to the Securities Exchange Act of 1934. For instance, the Company's results of operations may differ materially from those anticipated in the forward-looking statements due to, among other things: the Company's ability to mitigate the effects of 1997 legislation in France upon gross margins; increased price competition, the general level of economic health and activity in the markets and countries in which the Company operates; the ability to successfully integrate recent acquisitions including Delphi Group plc and Career Staff Co., Ltd ; and the continued availability of qualified personnel. In addition, the market price of the Company's stock may be volatile from time to time as a result of, among other things: the Company's operating results, the operating results of other staffing service providers, and changes in the performance of global stock markets in general.
Adecco SA is the global leader in personnel services, connecting up to 450,000 associates with business clients each day through its network of over 17,000 employees and 3,000 offices in 51 countries around the world. Registered in Switzerland, and managed by a multinational team with expertise in markets spanning the globe, Adecco delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates.
Adecco provides clients with staffing services and solutions covering all major industries as well as specific professions. The worldwide Adecco Brand network focuses on global industries in transition, including automotive, banking, electronics, logistics, and telecommunications. Adecco is also positioned as a worldwide leader in each of the major professional staffing segments with several world-class business lines: Accountants on Call and Jonathan Wren for Finance, Banking and Accounting; Ajilon and Computer People for high-end Information Technology, TAD and Roevin for Engineering and Technical. These Adecco businesses provide their clients with a broad range of staffing solutions, from temporary work to permanent placement, to consulting and managed services. Adecco also presents a very strong range of HR solutions with Econova/Lee Hecht Harrison, offering outplacement and career management services.
Adecco clients retain this unique range of services through local, national, and multinational contracts.
Adecco SA is listed on The Swiss Exchange [ADECCO I (ADE -136973); ADECCO PS (ADEP - 136963)], the Bourse de Paris [RM 12819] and NASDAQ [ADECY].