28/08/2009 - 10:11

Total Staffing to merge with Westaff

28/08/2009 - 10:11

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International recruitment firm Total Staffing Solutions is set to merge with blue collar recruitment company Humanis Group, which owns Westaff, in a deal worth up to $9.24 million to create a mid tier Australasian labour hire provider.

International recruitment firm Total Staffing Solutions is set to merge with blue collar recruitment company Humanis Group, which owns Westaff, in a deal worth up to $9.24 million to create a mid tier Australasian labour hire provider.

The consideration for the acquisition is $9.24 million payable to Humanis shareholders via the issue of 1.778 new Total Staffing shares for every one Total Staffing share on issue subject to shareholder, board and regulatory approval.

On completion of the merger, Humanis shareholders will collectively hold about 64 per cent of all issued shares in Total Staffing on a fully diluted basis.

Humanis posted an unaudited revenue of approximately $109 million in FY2009 following its acquisition of one of the largest blue collar labour hire providers in Australia and New Zealand in 2008, Westaff Australia and Westaff New Zealand.

The merger enhances Total Staffing's blue collar divisions, increases the sales lead generation for its UltimateSkills business by means of collegial realtionships with Westaff and improves efficiencies through the delivery of homogenous services to customers and supplier procurement systems.

Total Staffing chairman, Bryan Gardiner told WA Business News the merger is a significant step forward.

"We are very proud of the labour hire business we have built over the past two years," he said.

"To merge with such an iconic brand as Westaff which is known for quality customer service makes us confident that the greater economies of scale will greatly benefit our customers and shareholders.

"They're big where we're not and vice versa, so it's very positive.

"The deal should get us over $200 million a year, in time."

 

 

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