Two top executives from leading German recruitment firm Deutscher Industrie Service (DIS) are to join global recruiting giant Adecco after a proposed €636m buyout.

DIS chief executive Dieter Scheiff and chief financial officer Dominik de Daniel have agreed in principle to take up similar roles at Adecco, once the deal is completed.

This follows an offer to DIS shareholders of €54.5 per share, a 17.3% premium on the three-month average closing price for the Dusseldorf-based company.

“This is most likely the best acquisition since forming Adecco in 1986,” said Klaus Jacobs, Adecco interim chief executive and chairman.

DIS estimates its sales at €305m, with earnings before tax of €36m.

“The combination of DIS and Adecco continuing to operate under their distinctive brand identities will create an ever-stronger platform which will benefit all our clients, associates and colleagues,” said Scheiff.

Following the announcement, DIS shares rose 7% to €54.29, while Adecco's rose 3.8% to 67.80 Swiss francs, its highest level in 21 months.

The purchase is the largest by Adecco since the $1.6bn takeover of Olsten in 2000, and enables the company to double its market share in Germany, and to also fill a leadership vacuum.

2005 was a turbulent year for Adecco: Jerome Caille quit as chief executive in November, along with co-chairman Philippe Foriel-Destezet, after results fell short of market expectations.

The DIS deal is expected to be finalised in March.