Yes, that’s right folks. In case you didn’t know, last week saw New Zealand’s biggest ever recruitment acquisition when ASX-listed PeopleIN completed the purchase of Infrawork for an eyewatering $56m. Infrawork, who you’ll most likely know as the skilled trades and labour recruitment firm Extrastaff, also include an immigration firm, and a recruitment business based in Manilla. This sale eclipses (at first glance) the $36m paid by AWF for Madison back in 2013. This is some serious news.
Although the shareholding is particularly convoluted, no matter which we you cut, this sale will leave 60% majority shareholders Tom Tschudin and his partner Terri Leigh Crittenden absolutely filthy, stinking rich. As a power-couple they may divide opinion, but they’ve certainly achieved something that very few of us will manage. Colourful as they are, for a business selling at $56m, Infrawork/Extrastaff have kept an incredibly low profile on these pages. In fact, twice have they featured in the blog I believe. Once was the now infamous case of fisticuffs (well…more a Louboutin of mass destruction) with Franklin Smith at the RCSA awards, and the other time after they were publicly admonished for shipping in Filipinos only to then lay them off. Third time’s the charm it would seem.
Tom himself is an interesting character. Swiss-born, but not Swiss in any way that I’ve experienced from those boring bastards. It would be easy to think that any recruitment boss plying their trade in the wild west of migrant recruitment would only care about the money. Certainly, if you believe the Herald, this would be the case. I caught up with Tom and Terri yesterday and he couldn’t talk about the transformative powers of recruitment without tearing up. The man is either unhinged, in line for an Oscar, or actually gives a f*ck about making a difference. It is up to you, dear reader, to decide which is true.
There are three things I’ve been mulling over regarding this transaction.
Firstly, it’s the weighting between cash now, and earn out potential. The total deal value for this one is $56m with $25m cash paid up front, and a massive $31m to maybe follow. When Madison sold in 2013, it was $30m up front with $6m to follow based on performance post sale. If we look at what $36m is worth in 2026, you’re looking at a total $49m deal value, with cash up front being equivalent to $41m – considerably more than what Tschudin et all currently have in their sky-rockets. So who did it better? Well it depends on how much value you place on the bird in your hand versus those in the bush. And with fashions being what they are, it’s been a long while since most of us have seen any bush. Thankfully.
Secondly, it’s how successful these acquisitions have been historically. When AWF acquired Madison, Madison were delivering about $56m of revenue (that’s $76m today). Last year the entire Accordant Group delivered $165m of revenue. Was $76m from Madison? I think it unlikely. Manpower bought Elan, which is of course no more, and Chandler Macleod bought OCG (and where are they now?). The question remains, how successful will the group be without Tschudin’s unique blend of balls, entrepreneurship, and mayhem at the helm? Oscar Dunn (who incidentally once ran Chandler Macleod and OCG here in NZ), has a massive job in front of him; killing himself for three years to earn shareholders $31m. Oscar has done a phenomenal job in getting the business ready for sale, and it’s hard to find a better leader of people, so hopefully he’ll be rewarded bigtime if he can deliver the stretch target. I guess that’s what CEOs do.
Thirdly, we all have to question our own sense of status and recruitment snobbery. For many of us, myself included, we view blue collar recruitment as white collar’s poorer cousin. Many professional services recruitment firms won’t look at blue collar recruiters, and sitting here in Auckland CBD, the whole world of “trades and labour” seems a bit…grubby. However, we are of course arrogant, ignorant dickheads. Remember back to 2013. It wasn’t Madison buying AWF. If you’re a professional services recruiter, do you think your firm will ever sell for $56m? Or put it this way, if someone offered you $25m for your firm right now, what would you say? If the answer is “no”, then you’re clearly following the advice offered by Dr Dre at 2 minutes 39 seconds of his 1999 hit “The Next Episode”. From my conversations and observations, those who own and run professional services recruitment firms get a hard-on over good recruitment. Those who own and run trade recruitment firms become erect over good business. Now Tom remained seated during our catch up yesterday, but I’m pretty sure I know what gives him a turgid member.
Recruiting in trades, managing an immigrant workforce, and dealing with the constant headache that this must create is not for the faint-hearted. All you’re ever really known for is starting a punch up, pink Rolls Royce’s, and unemployed migrants. You might not get the flashy office, kudos from your peers, or wear the sharp blazer to your meeting with BNZ, but can it make you absolutely filthy, stinking rich?
F*ck yes.
^SW
