Vedior and Randstad Merger on Track & Corporate Services Group & Carlisle Group in Merger Talks

The talk of mergers is in the air again. Further to reports that Dutch staffing company Randstad NV are still on track with preparations for its cash-and-shares takeover of Vedior, the Corporate Services Group (CSG), the company behind brands such as Blue Arrow and Comensura, has announced it is merger talks with the Carlisle Group which includes Tate, Hewitson Walker and Praxis Executive among its subsidiaries.

Under the proposed deal CSG shareholders would hold 47 per cent of the merged company while Carlisle shareholders would hold the remaining 53 per cent.

The two recruitment groups between them enjoyed revenues just short of £1bn in 2007 and cover a broad range of staffing sectors in both the temporary and permanent markets ranging from hospitality to legal.

Commenting on the proposal Noel Harwerth, acting chairman of Corporate Services Group, said:

“A lot has been achieved at Corporate Services Group over the last three years but now is the time to move ahead with the company’s future strategy. The possible merger makes good sense both commercially and also from a financial point of view. We believe that it would, if implemented, provide a robust platform for acquisitions and growth in the future.”

Kevin Mahoney, currently chairman of Carlisle and proposed to be the chairman of the new company created by the deal, added:

“The possible merger is expected to bring a number of significant benefits to Carlisle’s shareholders. These include a greater degree of liquidity in the trading of shares and also benefits arising from economies of scale. I believe we can build a strong, prosperous group from the merger of these two companies.”

Ends

8th February 2008

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