Hexagon makes US move
Article Date: Sep 10 2008A headhunting and interim management company is to increase the international reach of one of its subsidiaries after agreeing to buy a US firm. AIM-listed Hexagon Human Capital will extend the services provided by Oxygen Executive Search, its senior and board level recruitment business, after striking a deal to buy Winchester Group.
The Atlanta-based executive search firm could cost Hexagon as much as $5.95 million (£3.3 million) depending in the financial health of the company by 2013. The deal is expected to close by the end of November, when $1.25 million (£700,000) will be paid, funded by debt.
An earn-out of up to $4.7 million (£2.6 million) is also part of the agreement, which is expected to be funded from its balance sheet. If the full earn-out is achieved Hexagon will pay more than four times Winchester’s earnings.
Hexagon approached Winchester with the deal as Oxygen is increasingly working with companies that have US operations and to protect its revenues it decided to expand its expertise.
“This is a highly strategic move which will help secure long-term senior and board level executive search assignments from an increasing number of high profile international clients,” Hexagon chief executive Jonathan Wright said.
