Dutch staffing company Randstad offers to buy Japan’s FujiStaff for 13.7 billion yen ($159M)

Randstad offers to buy out FujiStaff for $159M

AMSTERDAM — Dutch staffing company Randstad Holding NV said Friday it has offered to buy the 79.5 percent of Japan’s FujiStaff it doesn’t already own for 13.7 billion yen (euro124 million, $159 million), a bid the company’s management supports.

Randstad is offering 27,500 yen per FujiStaff share, representing a 62 percent premium to its closing price of 17,010 yen on the Jasdaq stock exchange on Aug. 12.

The deal is supported by FujiStaff’s founders, who hold a 44.6 percent stake.

Randstad, which is based in Diemen, in the Netherlands, and is the world’s second-largest temporary staffing company, said the deal is contingent on regulatory approval and shareholders tendering at least 75 percent of shares.

FujiStaff, Japan’s sixth-largest staffing company, had sales of 60 billion yen (euro461 million) in the fiscal year ended March 31.

It didn’t say what profit it made in that year but said it is on track to increase sales 5 percent and make a profit of 3 billion yen in the current year.

The company employs 1,000 and focuses on clerical and manufacturing staffing. Randstad said it expects to retain all Fujistaff employees after the buy.

Randstad Chief Executive Ben Noteboom says owning FujiStaff will significantly expand Randstad’s presence in the world’s second largest economy.

“It’s a very significant market,” Noteboom said on a conference call. “And whereas Randstad has a good footprint in most of these markets, in Japan Randstad is tiny.”

Analyst Frank van Wijk of SNS Securities said it made sense for Randstad to buy FujiStaff.

“If we look at other recent deals, the multiple paid by Randstad appears reasonable,” he said in a note Friday.

“The transaction gives Randstad control over an interesting asset…in a market that still has significant potential.”

Randstad shares rose 1.1 percent to euro31.80 in early Amsterdam trading.

Including FujiStaff’s debt, the deal is worth euro147 million ($188 million), Randstad said in a statement Friday.

Noteboom said Randstad would benefit from combining FujiStaff with its existing Japanese operations but expected few direct cost savings. However, the deal is being financed via Randstad’s existing credit lines and offers tax advantages, he said. He expects the deal to begin adding to Randstad earnings in 2011.

Randstad’s tender offer begins Aug. 16 and closes Oct. 13.