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Randstad Acquires SFN Group To Become The Third Largest HR Provider In North America

Written by StaffingTalk

Randstad Acquires SFN Group To Become The Third Largest HR Provider In North America

Please pardon the quick news blurb, but we wanted to make sure that everyone knew about this as soon as possible.

Randstad is buying another major staffing agency, SFN Group, for $770 million.

Randstad is based in Holland, and is the second-largest staffing organization in the world.

The U.S. and Canada-based SFN Group, formerly the Spherion Corp., inked a multi-million dollar deal to sell out to the Dutch corporation, which will make Randstad the third-largest human resources provider in North America, according to reports.

The announcement was made on July 20.

SFN President Roy G. Krause said in a press release, “This transaction creates immediate shareholder value. The executive management and I are confident that the combination of our two companies is a strong strategic fit that will not only deliver expanded service offerings for our clients in North America, but also creates opportunities to service them on a global basis.”

The deal has Randstad buying all SFN Group’s outstanding shares, at $14/share, which will come to roughly $771 million dollars.

Perhaps riding on the glory of the Randstad buy, the morning after the announcement, SFN Group’s stocks soared at an “unusually high volume.” Trading was up 51.6%.

The companies will combine more than 5,000 employees, and industry experts expect Randstad’s U.S. presence to double.

What do you think about this? Are developments like this good or bad for the industry?

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  1. Kelli Raymond

    This is a sign of the times: as more and more companies are choosing to outsource the adminstrative roles of HR (and maintain strategic HR inhouse), companies such as Randstad, and the services they offer, will become integral to so many small to mid-sized organizations.

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  2. Europeans stumble again

    Tocqueville is turning in his grave.

    Continuing the long-tradition of Europeans stumbling aimlessly in the American staffing market (witness Adecco’s wasted purchase of Olsten), Ranstad, who has been hopelessly incapable of building its own market here (in no part because aristocrats just don’t function well in the wild west), shows how desperate it is.

    In choosing Spehrion however and setlling on the unthinkable price of $700 million, one has to wonder if it was the rapidly declining sales or massive losses at Spherion that they found so appealing.

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  3. Christine A

    The world will be a better place without Spherion in the world. Congratulations to Randstad! Let the fat get cut……

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  4. Bill

    At least Brian Dennis will get his lazy (iMO) self kicked out as there won’t beroom for dead weigth. That he is! A Des Moines farmboy

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