Funding Move

Adecco completes financing to acquire AKKA

Adecco has carried out financial processes in order to position itself ready top buy AKKA Technologies. The exercise involved placing EUR 1 billion senior notes and EUR 500 million inaugural hybrid bonds.

According to the company it placed two tranches each of EUR 500 million fixed rate notes, maturing in 2028 and 2031, under its EUR 3.5 billion EMTN Programme. At the same time it placed its inaugural subordinated fixed-to-reset rate hybrid bond of EUR 500 million maturing in 2082 (the “Hybrid Bond”). All three issuances are to be listed on the main market of the London Stock Exchange.

The placement of these senior and hybrid notes completes the balanced financing package that underpins the Group’s acquisition of AKKA Technologies, says Coram Williams, CFO of Adecco Group whilst maintaining the company’s strong investment grade capital structure. “We are pleased to have secured very favourable financing conditions for these long-term notes which were more than 4.5 times oversubscribed,” said Williams. “The AKKA Technologies transaction accelerates our strategy and provides a significant value creation opportunity for investors, being growth, margin and earnings enhancing in year one. We expect the deal to close in early 2022.”

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