Pittsburgh-based Mellon Financial Corp. has agreed to acquire Unifi, a human resources consulting unit of PricewaterhouseCoopers. The acquisition will make Mellon the fourth-largest global provider of human resources consulting/administration services.
The agreement calls for Mellon to pay PwC approximately $275 million in cash. Other terms of the agreement were not disclosed. It is expected that the arrangement will close early in the first quarter of 2002.
Unifi, based in Fort Lee, N.J., was formed last year and reported revenue of $351 million in its first year of business. The outsourcing portion of Unifi, which employs approximately 2,100 consultants, will be incorporated into Mellon's Employee Benefit Solutions (MEBS) group, and an additional 400 human resources consultants will become part of Mellon's Buck Consultants group.
"This initiative is consistent with our strategy to add businesses and capabilities that enhance our high-growth, high-return fee-based businesses," said Martin G. McGuinn, Mellon chairman and CEO. "With Unifi, we expand our leadership positions and confirm our commitment to Buck's already world-class human resources consulting business. In addition, Unifi's human resources outsourcing expertise is a perfect complement to MEBS, and propels that business to a new level."
"We are very pleased that a company of the quality of Mellon has acquired our Unifi division," said Samuel A. DiPiazza Jr., the recently-appointed CEO of PwC. "Unifi and Mellon can better reach the unit's market potential and avoid the regulatory constraints Unifi faced as part of our firm."