JSE-listed Adcorp Holdings has acquired specialised staffing business, Staff U Need (SUN) for R210-million. SUN specialises in providing labour solutions – engineers and artisans as well as semi-skilled and unskilled electrical and mechanical workers – to the metal and engineering industries.
SUN also has a specific focus in providing both skilled and semi-skilled labour to the power generation industry, including Eskom and certain of its subsidiary companies involved in the maintenance and construction of power stations.
Adcorp Holdings CEO Richard Pike says the acquisition will benefit the group, given SUN’s particular niche industry and skills focus.
“The latest acquisition is recognised for its specialised industry knowledge in a high growth environment due to the acute need for additional power generation capacity as well as the ongoing need for turbine maintenance,” says Pike.
“The high demand for the scarce skills that SUN specialises in, together with its valuable database of qualified and tested artisans, made this a most attractive acquisition for the Adcorp Group,” Pike adds.
The acquisition would add an additional 3 200 contract employees to Adcorp’s existing 65 000 contract employee workforce and would contribute around 15% to group earnings on an annualised basis.
In welcoming the acquisition, SUN MD Ben Visagie says: “Staff U need is excited and enthusiastic to join a leader in the labour supply market as it will enable us to broaden our horizons. It will give us further opportunities to grow and expand, thereby fulfilling our vision to be the leading supplier in the industry.”
A new issue of Adcorp shares to the vendors of SUN will fund part of the purchase price whilst the balance will be funded out of the group’s cash resources.
The business of SUN was started in 1995.