SYDNEY, AUSTRALIA: APM Human Services International Limited (ASX: APM), a leading provider of employment services, has announced the signing of a Scheme Implementation Deed with Ancora BidCo Pty Ltd, an entity under the control of private equity firm Madison Dearborn Partners, LLC. This agreement sets the stage for the acquisition of all issued share capital of APM, excluding shares held by MDP affiliates.

Key Highlights of the Acquisition:

•          Shareholder Returns: APM shareholders are set to receive a cash consideration of $1.45 per share, valuing the company’s ordinary shares at an estimated $1.3 billion.

•          Premium Offer: The offer represents a premium of 74.7% over APM’s closing share price on February 16, 2024, and 23.8% above the volume-weighted average price since April 8, 2024.

•          Scrip Alternatives: Shareholders have the choice to receive up to 100% of the consideration in unlisted shares of the acquiring entity, providing an opportunity to stay invested in APM’s future.

•          Unanimous Board Support: The APM Independent Board Committee has unanimously recommended the scheme, advocating for shareholder approval in the absence of a superior proposal.

Strategic Implications:

•          The acquisition is expected to be completed before the end of 2024, subject to the fulfillment of certain conditions.

•          APM’s employment services business has been navigating through a period of low unemployment and client flows, with expectations of continued low activity levels into FY2025.

•          The company anticipates that the underlying EBITDA and NPATA for FY2024 will be at the lower end of the previously provided ranges.

The proposed acquisition is a testament to APM’s robust business model and its potential for growth, despite current market challenges. Shareholders are advised to await further instructions as the scheme progresses towards implementation.

APM Human Services weighs takeover proposal from Madison Dearborn Partners