ManpowerGroup acquired Right Management Consultants, Inc. for approximately $488 million ($18.75 per share), a transaction completed in January 2004, structured as cash and stock exchange offer followed by a second-step merger.
Right Management Consultants, Inc. operates in Career transition and organizational consulting. Right Management Consultants was the largest career transition and organizational consulting services provider in the world. It generated revenues of about $344 million and net income of $31 million through the third quarter of 2003 and was expected to reach roughly $450 million in annual 2003 revenues. Manpower acquired it via an exchange offer and second-step merger, completing the exchange offer on January 22, 2004 and consummating the merger on January 23, 2004.
Manpower expected the transaction to be accretive to 2004 earnings per share in the range of 3% to 5%, to enhance its capital structure and credit ratios, and to expand its continuum of employment services in a direction where customer demand was growing.
The acquisition of Right is an exciting and compelling opportunity for us to expand the range of services that we provide to our customers around the world in a direction that is consistent with our business strategy, and where customer demand is growing.Jeffrey A. Joerres, Chairman & CEO, Manpower Inc.
Advisory firms were not disclosed for this transaction.