Gi Group seals purchase of Kelly’s European staffing business
MICHIGAN, UNITED STATES — Staffing firm Gi Group Holding (Gi) has officially completed its purchase of Kelly Services’s (Kelly) European staffing business.
The deal, announced in November 2023, is worth €100 million (US$109.3 million), with an additional earnout potential of up to €30 million (US$32.8 million).
The earnout provision would be based on a multiple of an adjusted 2023 EBITDA measure, payable in the second quarter of 2024 if achieved.
With Kelly’s European staffing arm under their wing, Gi expects to strengthen its foothold in the HR ecosystem in eleven countries, such as France, Portugal, and Switzerland. Gi will also extend its robust staffing offerings to new markets in Belgium, Luxembourg, and Norway.
Kelly expects the sale to boost its EBITDA margin through its business transformation initiative. The Michigan-based firm will keep its managed services provider (MSP), recruitment process outsourcing (RPO), and functional service provider arms in key markets such as North America, Asia Pacific, and Europe, the Middle East, and Africa (EMEA).
Peter Quigley, Kelly president and chief executive officer, said: “By further streamlining the company’s operating model to focus on higher margin, higher growth business and unlocking significant capital, we have greater flexibility and capacity to invest where we can compete and win over the long term.”
According to Staffing Industry Analysts, Gi is ranked the 19th largest staffing firm in the world in terms of revenue, while Kelly Services is ranked the 12th largest staffing firm globally.
The European Commission approved the acquisition, noting that it would not affect industry competition given the companies’ limited combined market position resulting from the transaction.
