Hays seeks buyer for logistics operations
Hays, the business services group, is sounding out potential bidders for the logistics activities that used to form the heart of its operations.
The move could herald the break-up of the group, transformed over 30 years by Ronnie Frost, the former chairman, from a poultry wholesaler into one of the world’s biggest business services groups. However, shareholders have been pressing for a break-up after disappointing trading and two profit warnings in the past 18 months.
Schroder Salomon Smith Barney, Hays’ advisers, is understood to have contacted potential bidders for the business, which could be valued at between £250m and £400m.
The decision to put logistics on the block is the first significant move by Colin Matthews, the new chief executive appointed in September. Mr Matthews has indicated he would consider a break-up as part of his strategic review. The results of this review and any disposal plans are expected to be announced with interim results in March.
Interested parties said yesterday they expected the sale process to begin within the next week to 10 days.
Hays’ logistics business could be of interest to a European mail and logistics group such as Deutsche Post or TPG, a UK rival such as Exel or Tibbett & Britten, or a financial buyer.
The group surprised investors in June 2001 by issuing its first ever profit warning, partly sparked by a downturn in logistics. This came just two weeks before Mr Frost’s retirement, and also sparked the departure of John Cole, its chief executive.
Difficult conditions have eroded the value of the logistics business, which was estimated at £500m six months ago.
Shareholders want the group to focus on the personnel business, which has held up better than rival recruitment groups.
