Wednesday 11th Dec, 2019

Programmed gets Skilled

Labour hire company Skilled Group has agreed to be taken over by Programmed Maintenance Services.

Programmed will acquire Skilled by way of a scheme of arrangement which will see the former’s shareholders receive 0.55 Programmed shares plus $0.25 cash per Skilled share, resulting in Skilled shareholders owning 52.4% of the combined entity.

The offer is valued at $1.79 per share based on Programmed’s last closing price and represents a 45.5% premium to Skilled’s closing price on 22 May 2015, the trading day before the announcement of discussions between Skilled and Programmed.

Skilled’s directors are urging shareholders to vote in favour of the scheme, in the absence of a higher offer.

Skilled chairman, Ms Vickki McFadden said, “The near term financial benefits to Skilled shareholders resulting from this transaction are compelling. The combination of Skilled and Programmed creates the opportunity to unlock substantial synergies in the first year following implementation, and beyond.

“The combination will create a larger, more diverse business with the funding flexibility to support a range of organic growth and acquisition opportunities, and an enhanced equity market position.

“Our two organisations share a focus on delivering solutions that make our clients more productive and competitive. The company’s enlarged scale in staffing, maintenance and facilities management will facilitate lower costs, better customer service and enhanced organic growth opportunities.”

Chris Sutherland, Programmed CEO, will lead the combined organisation and as such, Angus McKay, Skilled CEO, will leave the company