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By Staff Report
Sep. 9, 2009
Recruitment process outsourcing provider The RightThing is acquiring the RPO business of Capital H Group, a Chicago-based HR consulting shop.
Under the acquisition, Findlay, Ohio-based The RightThing will absorb Capital H’s 20 employees in its RPO division, which is based in Milwaukee. Financial terms of the acquisition were not disclosed.
The RightThing had been in talks to purchase the division for the past two and a half months, company president Jamie Minier said.
“They had an RPO division that they had tried to build up over the past couple of years but it was just the wrong time, so they have decided to focus on their core offering,” she said.
Neil McEwen, managing consultant at PA Consulting, said it makes sense for Capital H to sell off its RPO business and focus on what it does best—human capital consulting, a business that has been difficult for many players given the economy.
“Capital H Group has not been doing brilliantly like so many other consulting firms in the country, so I am sure that the infusion of cash would be helpful for them to focus on their core area, which is really human capital advisory services,” he said.
Shannon Litzell, a spokeswoman at Capital H, wasn’t immediately available for comment.
The announcement marks The RightThing’s first acquisition in almost two years. In February 2008, the company acquired recruitment training and sourcing technology vendor AIRS.
The Capital H RPO acquisition expands The RightThing’s geographic presence, McEwen said.
“This helps us be national in scope and helps us gain market share,” Minier said.
The company wouldn’t comment on what clients it is inheriting through the purchase.
“We also think that this announcement shows the industry that we are stable and are really striving to be the No. 1 leader in this market,” Minier said.
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