3i looks set to more than double its investment in Coutts Consulting Group when it sells the business to US-based Right Management Consultants. The acquisition is subject to completion of a definitive purchase agreement and financing and is expected to close during the first quarter of 2002.
The transaction is valued at around $108 million including anticipated costs and consists of a combination of cash and purchase price notes. Right Management Consultants (Right) plans to finance the acquisition, refinance its existing debt and provide for additional working capital through a new term and revolving debt facility.
Atlas Group Holdings Ltd (AG), a company formed by management and 3i, acquired Coutts in a management buyout for around $51 million in February 1999. Coutts is a leading outplacement specialist and has operating divisions in the UK, Japan, France and Canada. Turnover for 2001 is expected to be around $92 million.
Richard Pinola, chairman and CEO of Right, said the acquisition will substantially enhance Right’s delivery network in Europe and Japan. “As part of this acquisition we add the premier European career transition firm with an international reputation for quality, innovation and exceptional client service. Our new colleagues will fit comfortably within Right’s culture of responsive, creative client service.”