9th May 2017
Hydrogen, the global specialist recruitment group and Argyll Scott, the international multifunctional specialist recruitment consultancy, are delighted to announce the creation of a global market leading specialist recruitment group through a merger of their two businesses.
Hydrogen has entered into a conditional agreement to acquire the entire issued share capital of Argyll Scott (Holdings) Limited for £3.3 million through the issue of the 9,034,110 Consideration Shares representing approximately 27.4 per cent of the Enlarged Share Capital. Hydrogen will subsequently acquire the Minority Interests in separate tranches up to April 2021 to be satisfied by payment in cash and/or through the issue of new Ordinary Shares.
Argyll Scott is joining Hydrogen to create a multi brand recruitment group capable of empowering more careers and powering more businesses than ever before. Together they will be able to deliver a world-class specialist recruitment service across multiple functions, industries and countries.
This merger will allow the Enlarged Hydrogen Group to accelerate international growth plans, attract the industry’s finest talent and become recognised as the best place to work in recruitment. The Group will also benefit from greater strength and depth in the London market and the efficiency of a shared global platform and resources for the benefit of all its clients, candidates, people and investors.
For Hydrogen, Argyll Scott is a natural partner. By bringing it into the Hydrogen Group, it enables Hydrogen to further accelerate growth and expand its APAC footprint. By selecting a partner with a strong and distinct brand, Hydrogen can diversify its business, utilise investment made into its global platform and digital marketing and take advantage of the significant opportunities in the global recruitment market.
For Argyll Scott, the merger with Hydrogen brings numerous benefits. By becoming an integral part of a global market leading specialist recruitment group, Argyll Scott can accelerate its long standing international growth plans and fast track its entry into key established target markets.
It brings the opportunity to benefit from Hydrogen’s global platform; enter the high growth Asian contract market; widen its access to high calibre talent pools and leading employers and provide access to capital. All this in turn enables Argyll Scott to offer greater reward and career opportunities to its employees.
John Hunter will join the Board of the Enlarged Group as an Executive Director and will be responsible for further developing the Enlarged Group’s businesses in APAC and the US. Ian Temple will continue in his capacity as Chief Executive Officer of the Enlarged Group and will retain primary responsibility for defining the Group’s strategy.
Ian Temple, CEO of Hydrogen, comments: “I look forward to welcoming the Argyll Scott Group to Hydrogen. Both Hydrogen and Argyll Scott had underlying growth in 2016. This merger takes us up to 350 staff globally with 100 consultants in APAC, making us a strong force in that region.
"John and I have known each other a long time, and we’ve recognized lots of cultural similarities between our two companies. Together, we can take advantage of the real opportunity that exists in the recruitment market and add better value to our clients, candidates and staff.”
John Hunter, CEO of Argyll Scott comments: “I have known Ian for over 15 years and it has been a pleasure working with him to agree terms that will benefit both our businesses and our employees. By joining the Hydrogen Group, Argyll Scott will be able to accelerate its growth plans, access the fast growing APAC contract market and offer greater career opportunities for its people.”
Since its founding in 2009, the Argyll Scott Group grew organically to 96 staff operating from offices in London, Dubai, Hong Kong, Singapore and Bangkok and recruits for contract, interim and permanent middle management positions across key business functions including accounting & finance, business transformation, marketing, sales and technology across APAC and EMEA.
In January 2017 the Argyll Scott Group acquired the Hong Kong, Singapore and Kuala Lumpur based operations of Reed Specialist Recruitment Group further broadening its footprint in the APAC market and increasing the group’s headcount to 129. The Group was listed in The Sunday Times “100 Best Companies to Work for” in 2016 and 2017.
Hydrogen was established in 2005 on the merger of Partners Group Limited and PRO Limited and was subsequently admitted to trading on AIM in September 2006. The Hydrogen Group provides recruitment services for permanent and contract mandates in respect of positions which are available primarily for mid to senior level staff members (typically earning between £70,000 and £150,000 per annum) across both types of role.
The Hydrogen Group’s operating model is international and split by geography being EMEA (including USA) with a significant presence in APAC. Within each region are individual practices; technology, finance, energy, legal, life sciences and business transformation.
The Board is focused on building market leading specialist teams. This is achieved by setting up incubator practices that the Hydrogen Group seeks to grow to attain a market leading position. The focus on an ultra-niche model enables the Hydrogen Group to utilise digital marketing to build and maintain relationships and leverage off its global platform.