Adcco Group Finalizes Sale of Soliant Health Business
The Addeco Group, a leading HR solutions partner, has announced the successful completion of the divestment of Soliant Health, a healthcare services outsourcing platform. The transaction, worth USD 612 million (EUR 551 million) according to sources, has generated a financial gain of approximately USD 260 million for Addeco.
This divestment forms part of Addeco's strategic focus to optimize their portfolio by divesting non-core businesses and concentrating on their core competencies. The proceeds from the sale will be utilized in line with Addeco's capital allocation policy.
According to this policy, the primary use of the proceeds includes debt reduction to strengthen the company's balance sheet, improvements in financial flexibility, and reductions in interest expenses. A portion of the funds will also be allocated towards supporting growth initiatives in Addeco's core business areas, such as investments in technology and service enhancements.
In addition, Addeco has committed to returning capital to shareholders when appropriate. This has been achieved through the financing of share buybacks and dividends, a move designed to enhance shareholder value.
Olympus Partners, a private equity firm with over USD 8.5 billion in assets under management, has acquired Soliant Health. The divestment is part of Addeco's strategy to concentrate on globally scalable brands and digital solutions.
Soliant Health, based in Tucker, GA, primarily connects healthcare providers in the education, nursing, pharmacy, and life sciences segments on a temporary basis. The transaction will result in a gain on sale to be recognized in Addeco's Q4 & FY 2019 results.
Addeco has received all necessary regulatory approvals for the divestment. J.P. Morgan Securities LLC acted as the exclusive financial advisor to Addeco on the transaction.
The Addeco Group's Q1 2020 results will be announced on 5 May 2020, with Q2 and Q3 results due on 6 August 2020 and 3 November 2020, respectively. Addeco will provide an update on the use of proceeds with the release of the Q4 2019 results on 26 February 2020.
For more information about the Addeco Group, please visit their website, follow them on Facebook, or Twitter. Contact information for the Addeco Group Investor Relations and Press Office is also provided. The Addeco Group Capital Markets Day is scheduled for 2 December 2020.
Addeco's focus on optimizing their portfolio led to the outsourcing of Soliant Health, a move that was deliberate in concentrating on core competencies in business. The financial gains from this divestment are expected to be used for various purposes, including reducing debt, improving financial flexibility, reducing interest expenses, and supporting growth initiatives in Addeco's core business areas, such as investments in technology and service enhancements.
