SOURCE: Hudson Highland Group, Inc.

October 02, 2007 08:00 ET

Hudson Highland Group Agrees to Divest Trade and Industrial Recruitment Unit in Australia

NEW YORK, NY--(Marketwire - October 2, 2007) - Hudson Highland Group, Inc. (NASDAQ: HHGP) today announced that it has signed a definitive agreement to sell its Trade and Industrial business in Australia for $3.0 million to the Skilled Group. Hudson will also retain approximately $4.0 million in net assets, primarily receivables. The transaction is expected to close in approximately 30 days.

This transaction represents the company's exit from the Australian blue-collar labor market, no longer core to its long-term business strategy of specialized professional recruitment and talent management solutions. Hudson will treat the Trade and Industrial business as a discontinued operation in the third quarter of 2007.

"Given its industrial focus, Skilled Group represents a better, long-term opportunity for the continued growth of our Trade and Industrial team and business," said Jon Chait, chairman and chief executive officer at Hudson Highland Group. "This transaction also allows Hudson to further focus on our specialized, professional recruitment segments moving forward."

For the year ended December 31, 2006, the Trade and Industrial business had revenue of $44.4 million, gross margin of $6.4 million and operating income of $2.3 million. For the year ended December 31, 2005, the Trade and Industrial business had revenue of $50.4 million, gross margin of $6.8 million and operating income of $2.5 million.

About Hudson Highland Group

Hudson Highland Group, Inc. (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at www.hudson.com.

Safe Harbor Statement

This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including those under the caption "Guidance" and other statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors include, but are not limited to, the company's history of negative cash flows and operating losses may continue; the ability of clients to terminate their relationship with the company at any time; the impact of global economic fluctuations on temporary contracting operations; risks and financial impact associated with acquisitions and dispositions of non-strategic assets; the company's reliance on information systems and technology; competition; fluctuations in operating results; risks relating to foreign operations, including foreign currency fluctuations; dependence on highly skilled professionals and key management personnel; restrictions imposed by blocking arrangements; exposure to employment-related claims and limits on insurance coverage related thereto; government regulations; and restrictions on the company's operating flexibility due to the terms of its credit facility. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. The company assumes no obligation, and expressly disclaims any obligation, to review or confirm analysts' expectations or estimates or to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    David F. Kirby
    Hudson Highland Group
    212-351-7216
    Email Contact