2 Oct 2013

AWF buying Madison Group

12:43 pm on 2 October 2013

AWF Group, a casual labour agency, is buying the Madison Group for up to $36 million.

But AWF is also warning its operating profit from continuing operations will probably be down by between 15% - 20% for the six months to the end of September.

AWF will pay $30 million up front for the recruitment firm which had sales of more than $56 million in the 12 months to the end of March.

Chairman Ross Keenan says AWF will also pay up to $6 million more, depending on Madison exceeding earnings targets in the 52 weeks following 4 November this year and on whether key clients and employees are retained.

Mr Keenan said the company is not sure why it had such a bad July - September quarter, particularly in Christchurch, after a good first quarter.