#United States #Chicago #Heidrick Struggles #Advent International #Corvex Private Equity

Heidrick & Struggles Enters into a New Era as a Private Company

In a significant move, Heidrick & Struggles International, Inc. (Nasdaq: HSII), a leading global leadership advisory firm, has announced a definitive agreement to become a private company. This transaction, led by a consortium of investors including Advent International and Corvex Private Equity, is valued at approximately $1.3 billion in cash. With this acquisition, shareholders will receive $59.00 per share, reflecting a premium of around 26% based on the company's recent stock performance.

A Transformational Shift

The decision to go private signifies a new chapter in Heidrick's strategy, allowing the firm to focus more on its core strengths without the pressures of public trading. Under the guidance of Advent and Corvex, the firm aims to invest in talent and technology to enhance its leadership advisory services. Heidrick has historically provided vital advisory, management, and executive search services to organizations worldwide, benefitting from its extensive network and expertise.

Strategic Advantages of the Transaction

This transition not only offers Heidrick the freedom to navigate its growth trajectory but also ensures significant equity participation from its current leaders. With the consortium’s backing, Heidrick plans to launch a new equity plan designed to attract and retain top talent in the industry — an essential move to remain competitive in a rapidly evolving market.

CEO Tom Monahan noted, “This pivotal moment represents an exciting new chapter in Heidrick's growth story, and a tremendous opportunity for us to join forces with an investment consortium led by two highly regarded and successful partners.” The influx of resources and strategic insight from Advent and Corvex is expected to accelerate Heidrick's ability to develop unique client relationships and deliver exceptional value.

Continued Leadership and Stability

Despite this major change, Heidrick's leadership team, including CEO Tom Monahan and President Tom Murray, will remain in place, ensuring continuity in strategic vision and execution. The company's headquarters will continue to operate from Chicago, Illinois, maintaining the Heidrick & Struggles brand.

Financial Support and Future Outlook

Advent and Corvex have secured debt financing for this acquisition from reputable banks, including Deutsche Bank and UBS Investment Bank. This solid financial backing, combined with Heidrick's established reputation as a trusted advisor to boards and C-suites, positions the firm well to capture the growth opportunities ahead.

Conclusion

As Heidrick & Struggles transitions into private ownership, it reflects a strategic pivot that aligns with the growing demands of clients for tailored, impactful leadership solutions. With the consortium's support, Heidrick is set to enhance its capabilities further, ultimately benefiting its clients and stakeholders alike. The expected finalization of this acquisition is slated for the first quarter of 2026, contingent upon the approval of shareholders and regulatory bodies.

This move encapsulates a broader trend in the marketplace where companies opt for private ownership to enhance their strategic position, invest in talent, and focus on long-term growth without the fluctuations and demands of public market scrutiny. Heidrick & Struggles' decision to partner with Advent and Corvex underscores its commitment to innovation and leadership in the advisory space.