Hudson Highland Group Signs Definitive Agreement to Sell Highland Partners Executive Search Business to Heidrick & Struggles Company Confirms Earnings Guidance for Third Quarter



    NEW YORK, Sept. 18 /PRNewswire-FirstCall/ -- Hudson Highland Group,
 Inc. (Nasdaq:   HHGP) today announced that it has signed a definitive
 agreement to sell its Highland Partners executive search business to
 Heidrick & Struggles International, Inc. (Nasdaq:   HSII) for a maximum of
 $51.6 million in cash:
     * $36.6 million payable at closing, subject to a net working capital
       adjustment, of which the company will pay $9.5 million to partners of
       the business to complete the transaction; and
 
     * up to $15 million subject to the achievement of certain future revenue
       metrics by that business in 2007 and 2008.
     The deal is expected to close in the fourth quarter of 2006, subject to
 a minimum number of Highland Partners consultants agreeing to join Heidrick
 & Struggles and customary closing conditions. Hudson Highland Group expects
 to net $20 million at closing after transaction and related fees, and will
 record a gain on the sale of approximately $20 million. The company will
 treat the Highland Partners business as a discontinued operation, and plans
 to use approximately $14 million of the proceeds to pay down a portion of
 outstanding debt.
     "This is a sound strategic move for both organizations," said Jon
 Chait, chairman and chief executive officer of Hudson Highland Group. "The
 divestiture will help us focus on core Hudson management recruitment,
 professional staffing and talent management solution markets while allowing
 Highland Partners to build upon its track record of success in a dedicated
 executive search business model."
     Guidance
     The company also confirmed its 2006 third quarter guidance of $355-370
 million in revenue and $7.5-8.5 million in EBITDA, prior to classifying
 Highland Partners as a discontinued operation, and will announce fourth
 quarter guidance in conjunction with its third quarter earnings release.
     Hudson Highland Group
     Hudson Highland Group is one of the world's leading professional
 staffing, retained executive search and talent management solution
 providers. We help our clients achieve greater organizational performance
 by attracting, selecting and developing the best and brightest people for
 their businesses. Our approximately 3,800 employees in more than 20
 countries are dedicated to providing unparalleled service and value to our
 clients. More information about Hudson Highland Group is available at
 http://www.hhgroup.com.
     Safe Harbor Statement
     This press release contains statements that the company believes to be
 "forward-looking statements" within the meaning of the Private Securities
 Litigation Reform Act of 1995. All statements other than statements of
 historical fact included in this press release are forward-looking
 statements. Words such as "anticipate," "estimate," "expect," "project,"
 "intend," "plan," "predict," "believe" and similar words, expressions and
 variations of these words and expressions are intended to identify
 forward-looking statements. All forward-looking statements are subject to
 risks and uncertainties that could cause actual results to differ
 materially from those described in the forward- looking statements. These
 factors include, but are not limited to, the company's ability to complete
 the disposition of the Highland Partners business to Heidrick & Struggles
 on anticipated terms and timetable; risks and financial impact associated
 with the disposition of the Highland Partners business; the impact of
 global economic fluctuations on temporary contracting operations; the
 cyclical nature of the company's executive search and mid- market
 professional staffing businesses; the company's ability to manage its
 growth; risks associated with expansion; the company's reliance on
 information systems and technology; competition; fluctuations in operating
 results; risks relating to foreign operations, including foreign currency
 fluctuations; dependence on highly skilled professionals and key management
 personnel; the impact of employees departing with existing executive search
 clients; risks maintaining professional reputation and brand name;
 restrictions imposed by blocking arrangements; exposure to
 employment-related claims, and limits on insurance coverage related
 thereto; government regulations; and restrictions on the company's
 operating flexibility due to the terms of its credit facility. Additional
 information concerning these and other factors is contained in the
 company's filings with the Securities and Exchange Commission. These
 forward-looking statements speak only as of the date of this press release.
 The company assumes no obligation, and expressly disclaims any obligation,
 to review or confirm analysts' expectations or estimates or to update any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
 

SOURCE Hudson Highland Group, Inc.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.