New board, settlement for Humanis
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Recruitment firm Humanis has settled a legal dispute relating to its 2009 takeover of Westaff Inc, while also announcing a board restructure following the successful acquisition of ResCo Services.
The company's subsidiary Humanis Blue was in litigation regarding the final deferred payment of $3 million to the vendors of Westaff after a warranty dispute.
Humanis will now pay $US1.1 million ($AU1.08 million) to Westaff along with 50 million fully paid ordinary shares.
Humanis managing director George Galavis said Westaff's acceptance of the share payment demonstrated confidence in the company's prospects.
Over the holiday period, Humanis has also managed to complete its acquisition of resources-focused personnel supplier ResCo after the successful completion of a $15 million capital raising.
ResCo director and founder Craig Ransley will become deputy chairman, while financial director Andrfew Poole becomes a non-executive director.
Mr Ransley is currently deputy chairman of Guildford Coal, and in 1999 founded what would become the TESA Group, a coal-focused contractor bought by Skilled Group for $61.8 million in 2006.
Mr Poole is currently a director of NuCoal Resources and was chief financial officer of Bradken during its successful transition from wholly owned subsidiary through private equity ownership to IPO.
He was also involved in the sale of TESA to Skilled Group.
Humanis non-executive director Craig Munro will become chairman, replacing Bryan Gardiner who will remain on the board as a director.
Current chief executive George Galavis will become managing director.
Mr Munro thanked Mr Gardner for his contribution to the company, and welcomed Mr Poole and Mr Ransley to the board.
"Their recruitment industry and public company experience are invaluable assets for our board," he said.
"Further, having Craig Ransley as deputy chairman clearly demonstrates the commitment that the ResCo vendors have in seeing a successful integration of the ResCo business and further development of the combined group."