FOR IMMEDIATE RELEASE EXHIBIT 99.1
Contact: Derek E. Dewan
Chairman, President and CEO
(904) 360-2000
Modis Professional Services, Inc. Completes Sale of Commercial Business to
Randstad for $850 Million
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Oct. 1, 1998--Modis Professional Services,
Inc. (NYSE: MPS-news; formerly AccuStaff Incorporated - NYSE: ASI) today
announced that it has completed the sale of its commercial staffing business
(Strategix) for $850 million in cash to Randstad U.S., L.P., the U.S. operating
company of Randstad Holding nv, an international staffing company based in The
Netherlands. The after-tax cash proceeds from the transaction will be used to
pay off borrowings, for acquisitions and other corporate purposes.
Modis Professional Services now will focus exclusively on providing information
technology and professional services globally. Modis Professional Services' pro
forma revenues are projected to be approximately $1.7 billion for 1998. Modis
Professional Services pro forma revenues grew approximately 49% in the first
half of 1998 over the same period last year.
Commenting on the announcement, Derek E. Dewan, Chairman, President and Chief
Executive Officer of Modis Professional Services, Inc., said, "We are well
positioned to execute our growth strategy which includes obtaining dominant
market share in each segment in which we operate. With the closing of this sale,
we will have approximately $200 million in cash, after paying taxes, a
commitment of $500 million for a credit facility, and virtually no long-term
debt. Our plan is to continue our focus on maximizing internal growth from
existing operations and opening new branches and specialty practice units in key
markets. We will also make strategic acquisitions and explore alternatives to
optimize our capital structure. Acquisitions that add to our breadth of
services, enhance a specialty practice area or fill a geographic need will be a
part of our strategic plan. We believe that acquisition prices have declined and
will continue to adjust to more reasonable levels, making them more additive to
earnings."
Modis Professional Services, Inc. is a global provider of business services,
including consulting, outsourcing, outplacement, training, and strategic
staffing services. The Company provides human resource solutions in the
information technology, accounting, legal, engineering/technical, and scientific
areas. Headquartered in Jacksonville, Florida, the Company serves the Fortune
1000 and other leading businesses through its offices located in the United
States, Canada, the United Kingdom, Continental Europe, and Latin America. For
more information about Modis Professional Services, please visit the following
web site: www.modispro.com.
Statements made in this press release, other than those concerning historical
information, should be considered forward-looking and subject to various risks
and uncertainties. The Company's actual results may differ materially from the
results anticipated in these forward-looking statements as a result of certain
factors set forth under Risk Factors and elsewhere in the Company's reports on
Forms 10-K, 10-Q and 8-K made under the Securities Exchange Act of 1934. For
instance, the Company's results of operations may differ materially from those
anticipated in the forward-looking statements due to, among other things: the
Company's ability to successfully identify suitable acquisition candidates,
complete acquisitions or integrate the acquired business into its operations;
the general level of economic activity in the Company's markets; increased price
competition; and the continued availability of qualified temporary personnel --
particularly in the information technology and other professional segments of
the Company's businesses. In addition, the market price of the Company's stock
may from time to time be significantly volatile as a result of, among other
things: the Company's operating results; the operating results of other
temporary staffing companies; and changes in the performance of the stock market
in general.