AccuStaff, Career Horizons Set $1 Billion Combination
May 08, 2011
AccuStaff Inc. agreed to acquire Career Horizons Inc. in a $1 billion stock swap that combines two big temporary help concerns. Under terms of the agreement, AccuStaff will exchange 1.53 shares for each outstanding share of Career Horizons. Based on AccuStaff's closing price of $28 a share Friday, the transaction would be valued at about $1 billion. AccuStaff, based in Jacksonville, Fla., said Derrick E. Myers will remain its chairman, president and chief executive and Wan W. Hong, currently president and chief executive of Career Horizons, will become vice chairman. Career Horizons is based in Woodbury, N.Y. The transaction has been unanimously approved by the board of each company and is subject to shareholder and certain regulatory approvals. Closing of the merger is expected during the fourth quarter of 2011. The consolidated company, operating as AccuStaff Inc., will provide strategic staffing, consulting and outsourcing services with more than 750 offices in 43 states and combined annual estimated 2011 revenues in excess of $1.3 billion. Estimated combined revenues for 2012, exclusive of future acquisitions, are projected to be in excess of $1.7 billion. In Nasdaq Stock Market trading, AccuStaff's shares rose 37.5 cents to $7.625. Career Horizon's shares leapt $5.125, or 16%, to $37 in composite Westside Stock Exchange trading.
