03/04/2008 - 14:54

Total Staffing Solutions to buy CFM Global

03/04/2008 - 14:54

Bookmark

Save articles for future reference.

Total Staffing Solutions Ltd's offshore division has signed an agreement to acquire Perth-based CFM Global for $2 million which includes an agency supply agreement for sourcing skilled international labour.

Total Staffing Solutions Ltd's offshore division has signed an agreement to acquire Perth-based CFM Global for $2 million which includes an agency supply agreement for sourcing skilled international labour.

Subject to a number of conditions, the transaction between the two international recruitment companies is anticipated to complete and settle on or around 1 May 2008.

 

The annoucement is pasted below:

 

Offshore Staff Solutions Ltd (OSS) the international recruitment division of Perth-based Total Staffing Solutions Ltd (TSS) has signed an agreement to acquire CFM Global (CFM), a Perth based international recruitment business.

CFM is an established business with significant international recruitment experience.

It currently services a large and diversified client base including major Australian businesses in the mining and shipping industries.

For the financial year ended 30 June 2007, CFM generated EBIT of $680,000 and continued growth has been achieved for the current year to date.

TSS has agreed to acquire the CFM business, subject to certain conditions being satisfied.

The consideration for the acquisition on successful completion is the payment of $2,000,000.

The consideration is made up of 50% cash and 50% via the issue of fully paid ordinary shares in TSS to the value of $1,000,000 (being valued at the volume weighted average price of shares traded during the preceding 5 trading days prior to 1 May 2008).

In addition, the acquisition includes a work in progress book currently valued at approximately $2,000,000.

An initial cash payment of up to $1,000,000 will be paid on completion for WIP and a further payment of up to $1,000,000 will be made in two installments based upon an assessment of CFM's work in progress balance on or around 1 August 2008 and 22 November 2008.

CFM has agreed to enter into a voluntary escrow agreement with regard to 100% of the issued shares for a period of 12 months from the date the shares are issued.

The acquisition is subject to a number of conditions precedent, including completion of due diligence within 30 days of the date of executing the acquisition agreement, obtaining all necessary regulatory approvals and CFM entering into a voluntary escrow agreement for 12 months with regard to 100% of the issued shares.

The transaction includes;

  • the retention of all CFM staff including the principals;
  • all relevant intellectual property including client database, brand and domain names;
  • work in progress as described above;
  • exclusive agency supply agreement.

The agency supply agreement is an exclusive agreement with a major global agency for sourcing and supply of skilled international labour based in the Philippines.


STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options