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UPDATE 2-Randstad to acquire Japan's FujiStaff for $161 mln
August 13, 2010 / 6:41 AM / 7 years ago

UPDATE 2-Randstad to acquire Japan's FujiStaff for $161 mln

* To buy out founding shareholders, tender for rest

* Offering 61.7 pct premium to closing price

* Sees limited positive EPS impact next year

* Shares rise 0.6 pct, in line with market

(Adds shares, CEO comments)

AMSTERDAM, Aug 13 (Reuters) - Dutch staffing company Randstad (RAND.AS) will buy the four fifths of Japanese peer FujiStaff Holdings 2147.Q it does not already own in a move to boost its reach in the world’s second-largest staffing market.

Randstad, the world’s second-largest jobs company, said on Friday it would buy the 44.6 percent stake of FujiStaff’s founding shareholders and launch a tender offer for the remaining shares.

The offer price of 27,500 yen per share represents a 61.7 percent premium to the stock’s last close. Randstad said it would finance the 13.7 billion yen ($160.5 million) deal with existing credit facilities.

Randstad shares rose 0.6 percent in early trading, in line with a similar rise for Amsterdam blue chips .AEX.

“The transaction gives Randstad control over an interesting asset (given the projected margin improvement) in a market that still has significant potential,” SNS Securities said in a research note.

Randstad said the deal would not change its plans to pay a dividend for 2010. It expects the acquisition to have a “limited positive impact” on earnings per share next year.

The deal is contingent on regulatory approvals and Randstad raising its economic stake in FujiStaff to at least 75 percent via the tender, which is set to close on Oct. 13.

Randstad generates most of its sales in the United States and western Europe, and executives said the deal was a necessary move to broaden its base.

“Whereas Randstand has a pretty good footprint in most of these markets, in Japan we were still a tiny company,” Chief Financial Officer Robert-Jan van de Kraats told analysts on a conference call.

Two weeks ago Randstad said it was not seeing a double-dip in the economy but was finding clear signs that companies in major markets were hiring more staff. [ID:nLDE66R0PS] ($1=85.36 Yen) ($1=.7799 Euro) (Reporting by Ben Berkowitz; Editing by Michael Shields and David Cowell)

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