Adecco plans to buy French HR consultancy BPI Group, it said on Thursday, the latest acquisition by the world’s largest staffing company as it seeks to become less sensitive to economic ups and downs affecting its business.
The Swiss company said it will combine BPI into its Lee Hecht Harrison (LHH) out-placement business, which helps workers who have been made redundant find new roles.
BPI Group is the third-largest HR consulting company in France, with 300 employees and revenues of around 40 million euros ($47.34 million). Its activities include career transition, training and advising workforces.
“With the planned acquisition of BPI Group in France, LHH will extend its leading market position and broaden its advisory offering,” Adecco Chief Executive Alain Dehaze said in a statement. “The steps announced today are in full alignment with our … strategy to truly differentiate and to invest in faster growth, higher margin segments.”
Adecco, which is buying BPI from investment company Perceva, did not disclose the terms of the deal.
LHH tends to do well during economic downturns, offsetting lower demand in the traditional staffing business finding temporary and permanent workers for offices and factories.
Adecco last week bought AKKA Technologies, a supplier of engineering, technical and R&D staff, as part of its strategy to become less sensitive to the economic cycle.
Adecco also said on Thursday it was talking to potential buyers for its legal solutions business in the United States. A sale, along with the purchase of BPI, will generate net proceeds of more than 50 million euros for Adecco, the company said.
The company also said it would reorganise its talent solutions business, which covers professional recruitment, reskilling and career transition services, to operate its nine business all under the LHH brand.
The three actions are expected to add 30 basis points to Adecco’s EBITA margin, the company said, and help it reach its targeted profit margin of 3%-6%.
Source: Reuters.com