Purchase Makes TMP One of the Largest U.S.-based Executive Search Firms Strengthens TMP's Global "Intern-to-CEO" Recruitment Strategy Company Also Announces Other Strategic Acquisitions, including Cameron-Newell, The Ninth Largest U.S.-Based Recruitment Advertising Agency
New York, August 26, 1999 – TMP Worldwide Inc. (NASDAQ: TMPW; ASX: TMP), the leading provider of global recruitment solutions including the dominant Internet career portal, Monster.com, and the world's largest yellow pages advertising agency, today announced it has completed its previously announced acquisition of LAI Worldwide. TMP will issue approximately 1.1 million shares of common stock for all of the outstanding shares of LAI. The acquisition will be accounted for as a pooling of interests and is expected to be immediately accretive to TMP's financial results.
LAI is one of the largest providers of executive search services in the United States, offering its services exclusively on a retained basis. To help its clients meet the demands of a changing workforce in the markets it serves, LAI identifies, evaluates and recommends qualified candidates for senior executive positions, primarily at Fortune 500 and large private companies. With 17 offices and approximately 100 executive search consultants, LAI expands TMP's presence in the United States and further strengthens its global executive search infrastructure. LAI reported net fee revenue of approximately $33 million for the six months ended June 30, 1999. On a proforma basis for the first six months of 1999, the combined companies' commissions and fees would have been approximately $328 million.
"The addition of LAI Worldwide accomplishes a number of strategic priorities for TMP Worldwide and will further accelerate Monster.com's rapid growth," stated Andrew J. McKelvey, chairman and CEO of TMP Worldwide. "First, LAI's solid domestic presence complements the overseas leadership of our existing search operations, TASA Worldwide, and better positions us to serve the recruitment needs of multinational corporations. We are now able to offer our clients the greatest access to an international talent base across major industries at the very highest levels of management. Second, the acquisition provides us with a solid U.S. base of entry into the mid-market executive search arena, which, when added to our online recruitment advertising business, furthers our "Intern-to CEO" strategy. Third, we augment our expertise in the financial services and technology industries, and gain new resources in the healthcare, consumer products and industrial sectors."
"LAI Worldwide is extremely pleased to join the TMP global recruitment network," said Bob Pearson, CEO of LAI Worldwide. "We're excited by the traditional and online recruitment opportunities that the combined strengths of TMP and LAI will create, both in the U.S. and internationally," he continued.
Mr. Pearson will use his expertise to help grow TMP's executive search operations. His first priority will be to establish a Board of Directors recruiting practice for TMP, which is expected to be active by early September.
"LAI, through its 100 highly regarded staff of executive search consultants in the U.S., brings to TMP a superb client roster, thereby broadening and strengthening our capabilities in worldwide recruitment. As the globalization of the recruitment marketplace continues to expand, TMP will be able to use its strong global presence, both online and off, to deliver to its clients the best candidates from any part of the world. Additionally, as TMP continues to grow its employer/client base and migrate job searches to Monster.com, the job seeker continues to benefit," said Michael Squires, President of TASA Worldwide.
"Compass,LAI's offering of web-based assessment and competency job profiling tools, will significantly boost the mid-level and executive search services offered by Monster.com," said Jeff Taylor, CEO of TMP Interactive. "The addition of Compass and its Internet group strengthens our dominant Internet strategy worldwide."
Other Acquisitions Enhance the Global "Intern-to-CEO" Network
TMP's Recruitment Advertising and Search and Selection units also announced several new strategic acquisitions.
Further expanding the US market share of its recruitment advertising business, TMP acquired, in a pooling of interests transaction, Cameron-Newell Advertising, Inc. on August 2, 1999. With the addition of Cameron-Newell, the ninth largest recruitment advertising agency in the U.S., TMP has strengthened its presence in the following geographic areas: California, Atlanta, GA and Chicago, IL and has established a presence in the following cities: Houston, TX, Phoenix, AZ and Philadelphia, PA. Byron Newell, currently President of Cameron Newell, will head TMP's Southwest Recruitment Advertising Operations as Senior Vice President. He will report to Kevin Johnson, the Executive Vice President of the Recruitment Advertising Operations of TMP Worldwide in North America. TMP also purchased Help Ad, Inc., a recruitment advertising firm based in Louisville, Kentucky.
Search and Selection expanded its international presence with the purchase, on July 15,1999, of Periere Conseil, based in Paris, France. TMP also acquired Brook Street Recruitment, a leading provider of temporary contracting administrative support personnel and a project recruiter based in Queensland, Australia, in a pooling of interests transaction, on August 3, 1999.
These four acquisitions had combined annual commissions and fees of approximately $14.0 million for their most recent fiscal year.
"As we expand our global "Intern-to-CEO" strategy, it is imperative that we continue to develop our recruitment capabilities at all levels and through all channels," said Jim Treacy, COO of TMP Worldwide. "We have achieved our role as the leader in Web-based recruiting, through Monster.com, by providing excellent service and technical expertise on and off the World Wide Web. We have amassed a recruitment advertising client roster that is second to none and Monster.com now has an impressive database of 1.8 million unique resumes. Through our traditional search business we have developed new client contacts and through the addition of our Internet services we have demonstrated our ability to use these channels to find for our clients the right candidates at all levels, from "Intern-to-CEO". As we continue to make strategic acquisitions, we demonstrate that our global recruitment network is by far the best choice for both the employer and the job seeker," continued Mr. Treacy.
The above statements include forward-looking statements based on current management expectations. Factors that could cause future results to differ from these expectations include: risks associated with acquisitions, competition and seasonality. Additional factors are described in the company's reports filed with the Securities and Exchange Commission.
Founded in 1967, TMP Worldwide, headquartered in New York City, now with approximately 6,100 employees in 25 countries, is, through its flagship product Monster.com, the online recruitment leader, the world's largest recruitment advertising agency network, one of the world's largest search and selection agencies, the world's largest yellow page advertising agency and a provider of direct marketing services. The company's clients include more than 80 of the Fortune 100 and more than 400 of the Fortune 500 companies.
Monster.com (www.monster.com), the flagship product of the Interactive Division of TMP Worldwide, is the leading, global online network for careers, connecting the most progressive companies with the most qualified career-minded individuals. Monster.com is committed to leading the market by offering innovative technology and superior services that give consumers and businesses more control over the recruiting process. The Monster.com network currently consists of websites in the United States, Canada, the United Kingdom, the Netherlands, Australia, Belgium and France. More information about Monster.com is available at www.monster.com or by calling 1-800-MONSTER.