Entrea Capital Advised Randstad in the Divestment of Its 70% Ownership Stake in Consulteam

Entrea Capital Advised Randstad in the Divestment of Its 70% Ownership Stake in Consulteam

Entrea Capital Advised Randstad in the Divestment of Its 70% Ownership Stake in Consulteam

Client: Randstad Holding (Entrea Capital’s Client)
Status: Public
Sector: Consulting Services
Revenue: €1.3 bn
Web: www.randstad.com
Seller: Consulteam
Status: Private
Sector: Consulting Services
Revenue: €5 mln
Web: www.consulteam.bg

Subsidiary: Consulteam


  • Consulteam is a South-East European HR company with a leading position in Bulgaria and Serbia, as well as a presence in Romania, Macedonia and other countries. Consulteam is an exclusive strategic alliance partner of Mercer and exclusive partner of Thomas International and TACK International

Owner: Randstad Holding (Entrea Capital’s Client)

  • Randstad Holding is the world's second largest HR company, headquartered in Diemen, Netherlands. Randstad specializes in solutions related to flexible work and human resource services, as well as regular staffing services for temporary and permanent jobs. The Company is listed as RAND on the Amsterdam Exchange Index

Situation Overview & Solution

  • Consulteam, the leading Bulgarian HR firm, was acquired by Vedior, an international HR firm, as part of its international expansion strategy
  • Randstad, the Dutch HR firm, acquired Vedior in 2007 in the largest HR transaction at the time, which enabled Randstad to become the second largest HR in the world
  • Following its acquisition of Vedior, Randstad began looking to divest certain operation in what it considered non-core markets, including South-East Europe

 

Entrea Capital’s Role and Value Added

  • Entrea Capital successfully advised Randstad on the sale of Consulteam to Grain gmbh, an Austrian HR firm:
  • Entrea Capital led the process of divesting the operations of Consulteam in Bulgaria, Romania and Serbia and managed multiple due diligence processes in each jurisdiction
  • Entrea Capital led complex three-party negotiations among the seller, a group of minority shareholders and the buyer
  • The transaction with the preferred buyer failed in the last moment due to the beginning of the global financial crisis. Entrea Capital was able to recover the deal by switching the process to the second preferred buyer
  • The transaction was completed successfully at a time when very few investors were looking at South-East Europe, given the inherently higher risks as a result of the financial crisis