AE Industry Partners Completes Acquisition of CDI Corp.

AE Industry Partners Acquires CDI Corp.

September 15, 2017 – Recruitment firm CDI Corp. has been acquired by AE Industrial Partners, a private equity investor specializing in aerospace, power generation and specialty industrial companies.

The transaction was effected through a previously announced cash tender offer for all of the outstanding shares of common stock of CDI followed by a merger. As a result of the transaction, which was valued at approximately $157.5 million, effective immediately CDI became a privately-held company and CDI common stock ceased trading on the New York Stock Exchange and will be delisted.


Acquisitions Continue to Make Headlines In Recruiting Industry
The wave of M&A activity among executive search firms continues. The latest deal: Solon, OH-headquartered Torch Group has acquired Selker Leadership, a search firm that places candidates in the technology and software fields.


“After a review of strategic alternatives by our board of directors, we are pleased to reach this agreement with AEI, which provides our shareholders with immediate liquidity and substantial certainty of value,” said Michael S. Castleman, president, interim CEO and chief financial officer of CDI.

“We further believe that this transaction presents a winning proposition for all of our stakeholders. AEI has a proven track record of partnering with company management, is a strategic-minded and growth-oriented investor that has substantial experience in many of our core end markets, and has a strong understanding of the company’s capabilities and business model. With AEI’s longer-term commitment, strategic vision, deep capital base and relevant investing and operating experience, we believe that CDI will strengthen its market position and its delivery of value-added engineering, IT and staffing solutions.”

Michael Greene, managing partner of AEI, said he expects the acquisition will bring numerous benefits. “We are excited to partner with CDI’s exceptional leadership team and market-leading brand,” he said  “We believe that the company’s capabilities and reputation, combined with AEI’s deep operating expertise in engineering, IT solutions, and human capital management, will allow the company to expand and strengthen its relationships and its value proposition to key customers. We look forward to working with the company and accelerating the growth of the business.”

The cash tender offer, which was made at $8.25 per share pursuant to the “Agreement and Plan of Merger” entered into by CDI and affiliates of AEI, on July 31. On Tuesday, 15,504,481 shares of common stock of CDI (excluding 321,104 shares tendered by guaranteed delivery), representing approximately 78 percent of the common stock outstanding on a fully-diluted basis (assuming the exercise or vesting, as applicable, of all outstanding options and time-vested deferred stock of CDI), were accepted for payment.

Acquisitions

A number of private equity, staffing and advisory companies have acquired recruiting firms in recent months. Here’s a sampling from the Hunt Scanlon Media Archives:

TechnoPro Holdings acquired Tokyo-based Boyd & Moore Executive Search. Financial terms of the deal were not disclosed. Boyd & Moore is a global executive recruitment firm operating primarily in the technology sector, serving multinational clients. With $1 billion in revenue and more than 13,000 engineers, TechnoPro is Japan’s largest engineering staffing outfit.

Simione Healthcare Consultants acquired Healthcare Concepts Inc., a Memphis, TN-based executive recruitment firm that specializes in the home care and hospice industry. he transaction combines the Healthcare Concepts team with Exact Recruiting, which was acquired by Simione in April.

HR consulting company Optimum Talent acquired executive search firm Conroy Ross Partners. Founded in 1994, Conroy Ross Partners is a national search firm with offices across Canada. It works with leadership teams to recruit a wide range of C-level executives.

Executive search firm Sonoma Consulting, Inc. has been acquired by Chicago-based private equity firm Highlands Ventures. With offices in Naperville, Chicago, Tyson’s Corner, and Hyderabad, India, Sonoma Consulting serves over 100 national and international companies.

Talent solutions firm Vaco acquired Pivot Point Consulting based in Seattle and boutique executive search firm Greythorn in Bellevue, WA. Greythorn specializes in placing top executives within the healthcare IT sector. In addition to executive search, the firm provides various talent management services.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Will Schatz, Managing Editor – Hunt Scanlon Media

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