The Adecco Group announced that LHH, its outplacement and HR consulting division, will become its global brand for talent solutions activities. Further the global staffing giant is also exploring the possible divesture of it US legal business and acquiring an HR consulting services provider in France. Its brand LHH plans to buy BPI Group, a French human-resources consulting provider, as part of a portfolio reorganisation.
The company expects one-time costs of 40 million to 50 million euros ($47.4 million-$59.2 million) for the strategy, mainly in 2022, and impairments booked in the third quarter this year of around EUR30 million.
As per the report, Adecco’s talent solutions’ brand portfolio will switch to one global brand from nine, utilising LHH as the worldwide lead brand for fully integrated HR services. In the future, the majority of assets within the Talent Solutions unit will operate under the LHH brand, which will streamline its operating model, establishing solutions-based business lines and global centers of excellence and enable the firm to deliver a simplified and improved customer experience.
The Adecco Group said the simplified global business unit will bring together its assets under one roof – LHH – but that General Assembly and ezra (powered by LHH) will retain their brand identities.
To implement these changes, the Adecco group estimates one-time costs of €40 million to €50 million, which will be incurred mainly in 2022, as the new brand is implemented worldwide.
“With the simplification of our brand portfolio, we are positioning LHH as our worldwide lead brand for talent solutions, and in transforming its operating model, we will drive a superior customer experience,” said Adecco Group CEO Alain Dehaze. “A unified and well recognised global brand will amplify growth and profitability in LHH and strengthen our leadership in the HR services market.”
In addition, Adecco stated that LHH will strengthen advisory capabilities through the planned acquisition of BPI Group, the third-largest HR consulting services provider in France with approximately €40 million in revenue and 300 employees. The acquisition also delivers access to markets LHH France has historically been less active in.
Last week, Adecco group also agreed to buy AKKA Technologies in a deal worth 2 billion euros ($2.4 billion), reported to be the biggest deal in the Swiss staffing company's 25-year history.
"The recent announcement of LHH becoming the global brand for talent solutions activities is an accomplishment for The Adecco Group. This news has come close on the heels of the acquisition of Belgium-based Akka Technologies which will make The Adecco Group the world’s largest provider of temporary staffing in terms of revenue. Both the developments will help strengthen our presence in the HR services market and will amplify the growth of The Adecco Group across the globe,” Adecco India spokesperson told People Matters.
As part of the deal, Adecco will combine AKKA with its science and IT staffing business Modis to bolster its services, which provide engineering, technical, and research and development (R&D) staff to automakers and aerospace companies.
With these acquisitions and additional capabilities Adecco Group is looking to expand its reach, as well as market share and become world's largest staffing firm.