FINANCIALS: Profits up as Adecco reveals healthcare business sale
Recruitment giant Adecco has entered into a multi-million dollar agreement to sell its US healthcare staffing business Soliant Health on the same day it released its Q3 2019 results.
The results reveal group gross profit was up 2% from €1.12bn to €1.14bn (£98m).
However, group revenue fell 2% from €5.99bn to €5.89bn, with the largest decline in revenue in the DACH (Germany, Austria and Switzerland) region (down 10%), while the biggest increase in revenue was reported in Japan – up 18%.
Revenue was down 4% and 1% respectively for the group’s North America and UK & Ireland general staffing and professional staffing businesses on the same quarter last year.
Elaborating on the group’s performance, CEO Alain Dehaze hailed a solid performance in an “uncertain external environment”.
“We remain focused on our business transformation and continue to invest in our strategic priorities – GrowTogether, IT and our digital ventures – which are fundamentally strengthening our business.
“We also delivered strong performances in the Career Transition and Talent Development activities, with a return to growth in Lee Hecht Harrison and revenue acceleration in General Assembly, confirming the value that these businesses bring to our portfolio.
“As we look to the fourth quarter, we are continuing to build the next layer of the GrowTogether programme, with a focus on digital tools and solutions that deliver greater value to our clients and candidates. This includes rolling out an enhanced integrated front office solution, our global candidate app and the PERFORM methodology, putting us on track to deliver the €250m GrowTogether productivity target for 2020.”
In a separate announcement the group revealed it has entered into a definitive agreement to sell its US healthcare staffing business Soliant Health for $612m to private equity firm Olympus Partners, which the group says is part of its strategy to concentrate on globally scalable brands and digital solutions.
JP Morgan Securities acted as exclusive financial adviser to the Adecco Group on the transaction, which is subject to customary closing conditions and is expected to be completed by Q1 2020.
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