MANPOWERGROUP INC. Acquisition of ettain group
August 24, 2021
FORWARD-LOOKING STATEMENTS
This presentation contains statements, including without limitation statements regarding anticipated timing and completion of the proposed transaction, anticipated results of the proposed transaction and the impact on our future financial and operating performance, the expected tax treatment of the transaction, anticipated synergies, expected integration and transaction costs, and the intended sources of funds for the transaction, that are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Forward looking statements can be identified through the use of words such as "may," "will," "intend," "should," "expect," "believe," "estimate," "anticipate" and similar expressions. Actual results may differ materially from those described or contemplated in the forward-looking statements. Factors that may cause actual results to differ materially from those contained in the forward-looking statements include, among others, (i) our inability to achieve expectations regarding the timing, completion, integration, accounting and tax treatments related to the proposed acquisition of ettain; (ii) our inability to achieve expected synergies and operating efficiencies from the proposed acquisition within the expected time frames or at all; (iii) the potential impact of the announcement on relationships with our and/or ettain group's employees, customers, suppliers and other business partners; (iv) inability to retain key personnel; (v) changes in legislation or regulations; (vi) developments in the COVID-19 pandemic and resulting business and operational impacts on us and/or ettain; (vii) economic, financial or social conditions that could adversely affect us, ettain or the proposed transaction; (viii) unanticipated liabilities or exposures for which we have not been indemnified or otherwise may not recover under insurance or otherwise; and (ix) other risks to ManpowerGroup's business and results of operations; each as further discussed in ManpowerGroup's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2020, which information is incorporated by reference. We caution that any forward-looking statement reflects only our belief at the time the statement is made. We undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances.
August 24, 2021 | ManpowerGroup | Acquisition of ettain group | 2 |
Acquisition of ettain group
Strategic Rationale
ManpowerGroup to acquire ettain group (ettain), one of the largest privately held IT resourcing and services providers in North America
- Will increase capability to provide IT resourcing and services across expanded industry verticals
- Will improve gross profit and EBITA margin profile driven by higher growth professional services concentrated in IT
TTM1June 30, 2021 | Pro Forma TTM June 30, 2021 | ||||||
Gross Profit Mix | Gross Profit Mix with ettain | ||||||
1 | Trailing twelve months. | ||||||
Talent Solutions | Talent Solutions | ||||||
15% | |||||||
14% | |||||||
21% | Total Gross | Total Gross | |||||
Profit $3.1B | 20% | 25% | Profit $3.3B | ||||
Experis | 64% | 61% |
Manpower
Manpower | Experis |
August 24, 2021 | ManpowerGroup | Acquisition of ettain group | 3 |
Acquisition of ettain group
Strategic Rationale
Acceleration of our Diversification, Digitization and Innovation (DDI) Strategy
- Our Diversification strategy focuses on accelerated growth of higher margin businesses
- Our Experis brand revenues will move from $3.8 billion to $4.5 billion following this acquisition
- Global IT staffing market of $76 billion1
- Favorable ongoing trends boosted by pandemic period acceleration of global technology investment
- Our IT specialization combined with a superior global footprint positions ManpowerGroup to significantly advance its global leadership in IT resourcing and services
1. Source: Staffing Industry Analysts 2022 Estimate.
August 24, 2021 | ManpowerGroup | Acquisition of ettain group | 4 |
Acquisition of ettain group
ettain group Overview
- $724 million in revenues, $75 million EBITDA for the twelve months ended June 30, 2021 on a pro forma basis 1
- National footprint with 28 offices with significant presence in the southeast U.S.
- Gross profit margin above 20%
- Diversified client base across several high growth industry sectors
- Substantially all convenience segment clients with exceptional client service ratings
- Minimal regional or client overlap
ettain Industry Vertical Composition
IT Resourcing & Services
1 Pro forma results assume businesses ettain acquired occurred at the beginning of the period.
August 24, 2021 | ManpowerGroup | Acquisition of ettain group | 5 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
ManpowerGroup Inc. published this content on 24 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2021 11:13:03 UTC.
