Polish contract, RPO, and outsourcing company Work Service announced that it has entered into an agreement to sell all of its shares in subsidiary Exact Systems.
The buyers will be funds managed by Cornerstone Partners and Oaktree Capital Management, L.P. (“Oaktree”).
Work Service describes Exact Systems’ range of services to include resident engineering, subassembly/production, sorting & rework, final product control and controlled shipping and says that it “assists leading manufacturers and distributors raise their overall quality through the selection, inspection and reworking of components during the entire production chain.”
The full purchase price for the shares held by Work Service will amount to PLN 178.6 million (€42.4 million). Its German business (Exact Systems GmbH) will be sold separately for PLN 13.9 million (€3.3 million) and the purchase price of which will be deferred by up to nine months after the closing of the transaction which will take place pursuant to certain conditions being met. In addition, unpaid amounts resulting from intercompany loans will be repaid to Work Service upon closing the transaction.
Blackwood Capital Group acted as lead advisor for Work Service.
Work Service first announced that it had begun the process of selling Exact Systems last year.
Maciej Witucki, the President of Management Board of Work Service, commented, “At the end of 2017, we communicated our new strategy for the years 2018-2020 according to which Work Service will focus on its core business, i.e. reinforcing its position in HR services in the entire Central and Eastern European region.
Witucki added that Work Service is focused on simplifying the company’s structure and recapitalising their balance sheet.
“Thanks to the sale of Exact Systems, we will reduce net debt significantly, and complete the transition to our new business model,” Witucki said.