Randstad, the Dutch staffing firm has entered into an agreement to purchase part of USG People's European operations. The cost of the rival operations to be acquired is at Eur20 million or US$20 million.
The move is said to make both of the firms more formidable according to a joint statement by the companies. USG People is the smaller rival to Randstad and both are finding it more and more difficult to improve profitability hurt by the European debt crisis and resulting economic recession.
In a statement, USG People said, "The scale of the respective business units is too limited for them to be able to add value." USG People operates exclusively within Europe providing general staffing for firms in administration clerks, drivers and other positions.
The sale involves staffing operations in Austria, Luxembourg, Italy, Poland, Spain and Switzerland. The revenue for these services amounted to Eur434 million, immediately impacting the profitability of the company.
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