Recruit Co. Ltd. acquired the U.S. and European operations of Advantage Resourcing for $410 million. The deal took effect Dec. 30.
It marks the latest large-scale acquisition for Tokyo-based Recruit, and will result in Advantage Resourcing divesting most of its non-Japanese operations.
Recruit gets the U.S. and European businesses of Advantage Resourcing in the deal as well as operations in Singapore, Hong Kong, Australia and Dubai. The business lines posted revenue of approximately $1.4 billion in their fiscal year ended June 30, 2011. The lines also included 250 locations along with 22,000 employees at more than 6,000 clients.
Recruit's buy of Advantage Resourcing follows its acquisition of Staffmark in October. Staffmark ranked as the 14th-largest U.S. staffing firm, and the deal with Recruit gave it an enterprise value of $295 million.
In addition, Recruit acquired The CSI Companies, a Jacksonville, Florida-based staffing provider, in 2010.
Recruit posted revenue of $3.095 billion in its fiscal year ended March 31, 2011. Its operations in Japan include publishing as well as staffing. Recruit ranks No. 6 on Workforce Management sister organization Staffing Industry Analysts' 2011 list of largest global staffing firms.
Advantage will keep its operations in Japan and its Advantage Federal operations in the U.S. The Advantage Federal business provides staffing, including security-cleared personnel, to firms serving the U.S. government.
Advantage's Japan brands include technical staffing providers Ctec, Technopro, CSI, Science, N&C and Technopro-China. Advantage's Japan brands will be part of a holding company called Prompt Holdings. They have approximately $850 million in sales.
Charles Abadie, Advantage chairman and CEO, will continue in those roles overseeing the operations under Prompt Holdings.
"This transaction provides great value for our investors, clients and employees and the culture, growth and success of Advantage International was a good match for Recruit," Abadie said.
Advantage Resourcing was formerly known as Radia Holdings Inc. before changing its name in early 2010. The rebranding included dividing the company into four groups: Advantage xPO, Advantage Technical Resourcing, Advantage Professional and Advantage Staffing. The new brands replaced Radia's former U.S. brands that included Technical Aid Corp., Talent Tree Inc., WillStaff Inc. and The Holland Group of Tennessee.
Advantage Resourcing ranks No. 11 on Staffing Industry Analysts' 2011 list of largest global staffing firms.
Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, email firstname.lastname@example.org.