August 8, 2017 – Recruitment firm CDI Corp. has agreed to be acquired by AE Industrial Partners, a private equity investor specializing in aerospace, power generation and specialty industrial companies. AEI will acquire all of the outstanding shares of the company’s stock for $8.25 per share in an all-cash offer and follow-on merger.
The agreement was unanimously approved by CDI’s board of directors following a review of strategic alternatives announced by the company in March. In addition, shareholders representing 26 percent of shares outstanding have entered into tender and support agreements.
The transaction, which is expected to close in the third quarter of this year, is conditioned upon satisfaction of a minimum tender condition, among other factors. No financing conditions are associated with the proposed agreement.
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, which will become a privately-held company.
“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,” he said.
“We are excited to partner with CDI’s exceptional leadership team and market-leading brand,” said Michael Greene, managing partner of AEI. “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.”
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-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 and is dedicated to home care, hospice, palliative care and other community-based services.
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