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Adecco Buys German Employment Agency Tuja

Adecco said it has signed an agreement to fully acquire Germany's Tuja Group for a total consideration of around 800 million euros ($1.07 billion) , with the acquisition seen earnings enhancing as of 2007. Adecco said the transaction, which is still subject to regulatory approval, significantly strengthens its position in the German temporary staffing market, one of the fastest growing of its kind in the industry worldwide.

The Swiss group said it will take over 97% of the German group immediately and 3% at the end of the year, with the total purchase price including 200 million euros of net debt.

Tuja offers specialized and general staffing services mainly to the automotive, aerospace and metal industries. Its 630 staff and 127 branch offices recorded estimated revenues of around 650 million euros last year. For the current financial year, Tuja is guiding for an EBITA of approximately 63 million euros. "I consider the German market as one of the most interesting ones in our industry. With only 1% temporary staffing penetration, this market benefits from structural changes and thus promises sustainable growth," said Adecco chief executive Dieter Scheiff.

Tuja's chief executive Peter Jackwerth and COO Thomas Baeumer will remain at Adecco, the company said.