In an attempt to solidify its operational roots, ManpowerGroup (MAN - Analyst Report), recently announced that it has agreed to acquire Workshop Holding AS.
Manpower’s acquisition of Workshop Holding AS will facilitate the company in enhancing its range of services and driving significant growth in Norway as the latter owns Norway’s largest construction sector recruitment company, Workshop Bemanning og Kompetanse AS.
The move is significant for the company, as it reinforces its dominant position in the Norway region. This is because in the Northern European Region, Manpower is witnessing growth in Norway, manifesting increased demand. Moreover, the company during the recently concluded fourth quarter hinted at a mild recovery in the markets in 2013, and expects positive momentum to sustain in Norway.
Post acquisition, Workshop Bemanning will be a part of ManpowerGroup Norway’s Manpower brand. The company expects to complete the acquisition in April.
Going forward, Manpower remains well positioned to benefit from the increased demand in the flexible recruitment services from Norway’s construction industry.
Manpower provides services to the entire employment and business cycle including permanent, temporary and contract recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting. Further, the company’s brand value and strong global network provide a competitive advantage over its peers Kelly Services, Inc. (KELYA - Snapshot Report), Robert Half International Inc. (RHI - Analyst Report) and Korn/Ferry International (KFY - Snapshot Report).
Manpower is now contemplating on exiting lower margin business and venturing into high margin business and is focusing on controlling expenses alongside. Further, the company has spread its wings in high-growth emerging markets of India and China.
Consequently, the company’s strong upside potential is well reflected through the Zacks Rank #1 (Strong Buy).