Heidrick & Struggles International, Inc. (ticker: HSII, exchange: NASDAQ) News Release - 14-Jul-1999
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Heidrick & Struggles Signs Letter of Intent to Acquire Redelinghuys Group
Business Editors
CHICAGO--(BUSINESS WIRE)--July 14, 1999---
Agreement Solidifies Position in South Africa
Heidrick & Struggles International, Inc. (Nasdaq: HSII), the world's leading executive search firm, today announced that it has signed a letter of intent to acquire Redelinghuys Group Holdings (Proprietary) Limited, the pre-eminent executive search firm in South Africa. Redelinghuys, which has offices in Johannesburg and Cape Town, generated revenues of approximately $2 million in its fiscal 1999.
"Our alliance, which began in 1998, has proven to be an excellent one for both Heidrick & Struggles and Redelinghuys," said Patrick S. Pittard, President and Chief Executive Officer. "Both firms felt it was time to make Redelinghuys a permanent part of our organization. Their number one position in the top level of executive search in South Africa extends our leadership to yet another geographic area. In addition, their experience in management audit enhances our development of this complementary business."
"The renaissance of Africa is real," stated Johann Redelinghuys, Chairman of Redelinghuys. "Heidrick & Struggles' global reach is unsurpassed, and the company is at the forefront of recognizing the importance of serving clients who will be building businesses here for the future. We are delighted at the prospect of cementing this relationship."
It is anticipated that a definitive agreement will be signed within 90 days, with closing subsequent to due diligence and other reviews. At closing, Heidrick & Struggles will issue shares of its common stock equivalent to approximately R9 million to the Redelinghuys shareholders. The exact number of shares will depend upon Heidrick & Struggles' stock price at the date of closing. The acquisition, which is anticipated to be accounted for on a pooling-of-interests basis, is expected to be immediately accretive to Heidrick & Struggles' earnings.
Heidrick & Struggles International is the world's leading executive search firm, specializing in chief executive, board of directors and senior level management assignments. Today, over 750 Heidrick & Struggles professionals serve a broad range of organizations including Fortune 500 companies, financial institutions, major health care organizations, universities and not-for-profit organizations, leading mid-cap companies, and emerging growth companies from offices in more than 60 cities throughout North and South America, Europe, the Middle East, Africa and Asia Pacific. For more information about Heidrick & Struggles, please visit our website at (http://www.heidrick.com/).
Certain matters discussed in this news release are forward-looking statements that are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise, and include known and unknown risks, uncertainties and other important factors that could cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of the risks, uncertainties, assumptions and factors that could affect the Company's financial results are included in the Company's recent SEC filings. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. All forward-looking statements in this news release are expressly qualified by these cautionary statements, and the Company expressly disclaims any duty to update such forward-looking statements.
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CONTACT: Heidrick & Struggles
Jennifer Silver (Media) 404/572-0019 or Lynn McHugh (Analysts) 312/496-1593
KEYWORD: ILLINOIS INTERNATIONAL AFRICA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED BANKING
MERGERS/ACQ