Bain Capital Private Equity has announced the acquisition of a majority stake (55%) in House of HR. After ten years under the aegis of French private equity specialist Naxicap Partners, the Belgian company is now flying the American flag. Here’s an update from the experts at AURIS finance, a consultancy specialising in mergers and acquisitions.
A major player in the recruitment sector
House of HR, better known under the Accent brand, is one of Europe’s leading temporary employment agencies. Founded in Belgium in 1995, the group stands out for its hybrid positioning: a talent solutions service, with an engineering and consultancy specialisation. Its structure is also unique, with a decentralised model that is as close as possible to job candidates and companies looking for skilled talents. House of HR is also one of the pioneers in the development of online recruitment platforms, notably CTRL-F, which specialises in the IT sector, and Gighouse, a platform dedicated to bringing companies and freelancers together.
Growth through acquisitions
The Belgian company has grown rapidly, both organically and through successive acquisitions in Belgium, France, the Netherlands, and Germany. In 2017, House of HR absorbed the Dutch Redmore Group, a consultancy and technology solutions provider. In the same year, House of HR acquired Vialegis, a recruitment company specialising in legal professions. These numerous transactions have enabled House of HR to make its mark on the temporary staffing market. As a result, the group’s turnover has reached €2.2 billion by 2021. Each month, 57,000 workers are placed by the group’s various brands via its 700 agencies across Europe. This strong growth is largely due to the entry of private equity specialist Naxicap Partners into the Belgian company’s capital. At the time of the French fund’s arrival, House of HR had revenues of €330 million, an EBITDA of €30 million, and 227 offices across Europe.
A valuation of €2.9 billion
The group’s valuation has soared. According to the daily Les Echos, American giant Bain Capital Private Equity has valued the Belgian company at €2.9 billion, a multiple of almost 11 times Ebitda, estimated at €263 million in 2021. “Bain has done a masterstroke in securing a TLB of this size, given the macroeconomic context. It’s one of the few large-cap deals signed since the start of the war in Ukraine, and I think it will be one of the last for a while,” said a source close to the matter. On the M&A market, the start of the second half of 2022 has been marked by a significant slowdown in transactions. This slowdown is not only affecting companies, but also funds, which are becoming more cautious in the wake of a growing number of crises.
Get the support you need
When an investment fund acquires a stake in a company, it can accelerate its development very rapidly, as the case of House of HR has shown. However, every time a new shareholder acquires a stake in a company, it is important to consider the company’s future development from an in-house perspective. Thanks to their sector-specific expertise, the specialists at AURIS Finance are able to assist you with all your M&A operations.
