CDI Corp (CDI) Sells UK Subsidiary CDI AndersElite
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CDI Corp. (NYSE: CDI) announced it has sold its UK-based subsidiary, CDI AndersElite Ltd., to the Anders management team and employees. Anders provides staffing and recruitment services to firms in the UK built environment and rail industries. The Company will maintain a minority interest in the new entity, AndersElite Holdings Ltd.. The transaction is expected to be marginally accretive to fourth quarter earnings.
"The sale of Anders is consistent with our strategy to focus CDI on delivering solutions based on specialized information technology and engineering talent," said CDI President, Michael S. Castleman. "We are pleased that this transaction provides the clients of Anders with strong continuity in the high quality talent delivery and client service for which Anders is recognized. We look forward to working with the Anders team as partners in their future success."
Consideration received by the Company in the transaction includes approximately $6.0 million of cash, subordinated debt in Holdings of approximately $2.3 million and warrants representing 19.99% of the fully diluted equity in Holdings. Additionally, Holdings repaid approximately $0.9 million of existing Anders debt. Anders was part of CDI's Enterprise Talent segment and represents approximately $43.5 million of the segment's $273.1 million of revenue for the six months ended June 30, 2016.
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