Summary of mergers and acquisitions in the temporary work sector in 2018

In France, 2018 was a productive year in M&A in the temporary work sector. This positive outcome is due to the growth of turnover in this sector of 15% in 2017 and 10% in 2018 (estimation by Xerfi) and also to 5 years of CICE which strengthen the equity capital of groups of this sector.

Despite the increasing digitalisation of the sector, marked by the emerging pure players 100% digital and by their alliances with traditional actors (Randstad-Corner Job or Actual-onvabosser.fr), the 2018 outcome highlights the willingness of buyers to develop their agency network with acquisitions to offer more proximity to their customers.

This is how Partnaire group consolidated its positions in Eastern and South-Western France while developing its national network with the acquisition of Inter-conseil and its 55 agencies. RAS has expanded its local network in the South-West with the acquisition of BSL.

The year was marked by the merger of Actual and Leader which created a group of more than €1bn, reaching a national level with a network of more than 300 agencies.

The acquisition of specialized temporary work companies remains a development axis for numerous players of the industry. In order to keep their levels of margins, temporary work groups are looking for market niche with high added value illustrated by the acquisition of the recruitment and tertiary temporary work firms Exelteam and MPC by DLSI-Tercio or even the sales of Concept Recruitment to RAS Group specialized in the temporary work and recruitment in the fashion and luxury sector.