Aker Kvaerner acquires Ellayess from Kvaerner
Posted: 28 December 2004
Ellayess, one of the world's largest specialised recruitment agencies will be sold from Kvaerner to Aker Kvaerner.
Providing high quality engineering professionals on temporary and project assignments, Ellayess will add valuable flexibility to Aker Kvaerner and allow the group to adjust its cost base more easily and quickly when markets change.
As part of Kvaerner and under Kvaerner management, Ellayess has grown to become a leading provider of contract personnel to a wide range of industries. The merger of Kvaerner's Lawrence Allison and the former Aker Maritime's Aker International Resource groups in 2003 was an important milestone in its restructuring.
Operating from ten recruitment centres around the world, Ellayess has around one hundred thousand engineering professionals in its files. The company's operating revenues in the first nine months this year was NOK 827 million. Earnings before interest, tax and amortisation (EBITA) were NOK 23 million in that same period. EBITA for 2003 and 2002 was NOK 20 and NOK 19 million respectively.
For Aker Kvaerner reduction of fixed costs is a key priority. Access to temporary personnel with the right competencies at the right time is important to meet this objective. The purchase of the Ellayess group fits in well with this strategy. This year, Aker Kvaerner hires around one thousand specialists from Ellayess, up from around 700 on average last year.
The sale of the Ellayess group to Aker Kvaerner is entirely in line with Kvaerner's declared strategy. The Ellayess group has been restructured and streamlined, and values have been created and unlocked for Kvaerner shareholders.
In the transaction, the agreed enterprise value of Ellayess is NOK 284 million. The transaction is settled with effect from 31 December 2004 as part of the post-restructuring pro and contra agreement between Kvaerner and Aker Kvaerner. In accounting terms, the transaction will leave Kvaerner with an estimated gain of NOK 112 million in the group accounts for the fourth quarter 2004.A small part of the Ellayess group operating in the United States will not be part of the agreement.
Pro forma historical financial details about the companies in the transaction as well as for Kvaerner after the transaction are currently being prepared and will be made available by Kvaerner to the financial markets early in 2005.
For more information see www.akerkvaerner.com
Posted by Richard Price,
Editor EnergyME.com
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