Blog Coverage CDI Corp. Ropes in the Services of Investment Bank – Houlihan Lokey for Advice on Strategic Options

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LONDON, UK / ACCESSWIRE / March 21, 2017 / Active Wall St. blog coverage looks at the headline from Philadelphia, Pennsylvania based CDI Corp. (NYSE: CDI) (“CDI”) as the Company announced on March 20, 2017, that the Company is looking to unlock shareholder value and has begun the process of identifying and evaluating strategic options. The Company has roped in the services of global investment banking firm Houlihan Lokey Inc. (NYSE: HLI) for financial advice and help in exploring and reviewing of options. Register with us now for your free membership and blog access at:

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One of CDI Corp.’s competitors within the Staffing & Outsourcing Services space, 51job, Inc. (NASDAQ: JOBS), reported on February 22, 2017, its unaudited financial results for Q4 2016 and FY16 ended December 31, 2016. AWS will be initiating a research report on 51job in the coming days.

Today, AWS is promoting its blog coverage on CDI and HLI; touching on JOBS. Get all of our free blog coverage and more by clicking on the link below:

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Sharing his views on the matter, Michael S. Castleman, President and Interim CEO of CDI said:

“As the Board carefully considers potential strategic avenues to enhance value, the management team and the thousands of associates at CDI remain focused on our ongoing transformation to accelerate growth and expand profitability. We are excited about the Company’s prospects and ability to enhance shareholder value under our transformation strategy, regardless of the outcome of a strategic alternative process.”

CDI was established in 1950 and its business is divided into four verticals – Enterprise Talent, Specialty Talent & Technology Solutions, Engineering Solutions and MRI. It offers a range of services to clients across industries like energy, chemical, aerospace & industrial equipment, infrastructure, municipal and state governments, and the US Department of Defense, etc.

Way forward

All strategic options, including the possibility of sale of the Company, will be weighed against the Company’s goals of improving sales and organizational effectiveness. The transformation plans were outlined during the announcement of CDI’s FY16 financial results. Houlihan Lokey will act as the financial advisor and guide the Company in attracting partners for the sale of the Company.

Global investment bank, Houlihan Lokey specializes in mergers and acquisitions (M&A), capital markets, financial restructuring, valuation, and strategic consulting. For 2016, Thomson Reuters has ranked Houlihan Lokey as the No. 1 M&A advisor for all US transactions, the No. 1 global restructuring advisor, and the No. 1 Global M&A fairness opinion advisor over the past 20 years.

CDI has signaled that the entire exercise does not guarantee that it will result in a transaction and if at all there is a transaction there is again no guarantee that it will be completed. The Board of Directors of the Company will have the final say in the matter and the Company may choose not to disclose any progresses that result as a part of the strategic review process.

CDI has also informed that it is moving its Annual Shareholder Meeting to Q4 2017 so that the review can be completed and shareholders can make informed decisions based on the outcome of the strategic review.

Background

At the time of announcing its Q4 2016 and FY16 results on March 08, 2017, the Company had revealed its plans for 2017. The Company plans to focus on transformation to deliver profitable growth and improve returns to its shareholders. For attaining this transformation, the Company plans to increase sales and improve operational efficiency. CDI had laid out a five-step strategy to be implemented across the Company to achieve its goals. They include improving corporate strategy and key account management which will result in better industry penetration and increase in the number of clients. Extending of its engineering and technology services to federal government agencies both civilian and defense agencies. Bring together the Company’s Specialty Talent and Technology Solutions into the EdgeRock brand. This unit can then be put up for sale. The Company plans to create a single Center of Excellence to handle talent acquisition across all CDI’s operations. The Company plans to reduce cost, improve efficiency, and avoid complications by using uniform operating platforms and vendors across the entire organization.

Stock Performance

At the close of trading session on Monday, March 20, 2017, CDI Corp.’s share price finished yesterday’s trading session at $7.65, advancing 2.68%. A total volume of 65.90 thousand shares exchanged hands, which was higher than the 3 months average volume of 40.07 thousand shares. The stock has surged 42.72% and 26.03% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 3.38%. The stock has a dividend yield of 6.80% and currently has a market cap of $142.83 million.

Houlihan Lokey’s shares finished at $33.03, down 1.29% at the close of trading on March 20, 2017. The stock saw a volume trade of 232.62 thousand shares. The stock has been up 2.25% in the last month and 7.37% in the last quarter. The stock registered a gain of 35.63% in the last 12 months and its year-to-date performance was up 6.82%. The stock is currently trading at a PE ratio of 22.55 and has a dividend yield of 2.42%. At its last closing price, the stock’s net capitalization stands at $2.20 billion.

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