VMP merges its operations with Smile Henkilöstöpalvelut.

VMP Group, a Helsinki, Finland-based HR services company, announed its intentions yo merge operations with the Finnish competitor Smile Henkilöstöpalvelut Oyj.

The transaction will be executed as a share exchange, in which Smile’s shareholders will receive 0.8087 new shares in VMP as share consideration for each share in Smile owned by them, corresponding to a debt-free purchase price of approximately EUR 82 million (based on the closing price EUR 4.92 of VMP as at 4 July, 2019). The number of new VMP shares to be issued is expected to be 10,050,177 shares.

VMP Plc will purchase shares from NoHo Partners Oyj and the minority shareholders of Smile Henkilöstöpalvelut Oyj to acquire the share capital of Smile. The deal brings together two industry leading HR services companies, who together have a stronger market position and a better ability to reform working life.

Following the transaction, the current shareholders of VMP and Smile will hold approximately 59.6% and 40.4%, respectively, of the shares in VMP. As a consequence of the completion of the Transaction, the largest shareholder of Smile, NoHo Partners, will become the largest shareholder of the combined company with approximately 30.3% shareholding. The largest shareholders of VMP, Sentica and Meissa-Capital, will hold approximately 23.1% and 11.5%, respectively.

Smile, led by CEO Sami Asikainen, is one of the leading HR services companies in terms of revenue and one of the fastest growing companies providing staffing services in Finland. Smile provides HR services nationwide for different industries, such as hotels, restaurants and catering (HoReCa); events and promotions; healthcare; and industry, construction and logistics (TRL). The company is known for its positive and humane working culture. NoHo Partners is Smile’s largest owner.

The company recorded revenues of EUR 128.6 million, adjusted EBITDA of EUR 11.5 million and adjusted EBITA of EUR 11.3 million in 2018

VMP, led bY CEO Juha Pesola, is a Finnish HR services company with a comprehensive offering of staffing, recruiting and organisational development, and self-employment services. VMP’s mission is to help companies and individuals in succeeding in the changing working life. VMP serves its customers in Finland and Sweden and it has a recruitment hub for staffed employees in Romania. VMP Group provides services under the brands of VMP Varamiespalvelu, Voima, Enjoy, Extraajat, Personnel, Corporate Spirit and Eezy.

VMP has grown rapidly through organic growth and acquisitions. In 2018, VMP recorded a revenue of EUR 124.9 million and in the first quarter of 2019, a revenue EUR 38.2 million.