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Resources Connection to Make Initial Offering

Stocks: The Costa Mesa professional services outfit will set a sale goal as high as $103.5 million.

September 02, 2000|From Bloomberg News

Resources Connection Inc., a professional services firm that supplies accounting and other specialists to corporate clients, will seek to raise as much as $103.5 million in an initial stock sale, according to regulatory documents filed Friday.

The number of shares and estimated price range for the deal weren't disclosed.

The Costa Mesa company's professionals can help corporate clients with mergers and acquisitions, changeovers of information systems, financial analyses and tax-related projects, according to the Securities and Exchange Commission filing.

Resources Connection, which was started in 1996 as an independent subsidiary of Deloitte & Touche LLP, completed a management-led buyout in April 1999, the filing said.

The company reported net income of $6.5 million on revenue of $126.3 million for the 12-month period ending May 31.

Resources Connection has 35 offices in the U.S. and three abroad and more than 1,500 clients, including 43 of the Fortune 100, the filing said. The company said it has more than 1,050 professionals to hire out, about 50% of whom are licensed accountants and 28% of whom have graduate business degrees.

Donald B. Murray, 53, is Resources Connection's chairman, chief executive and president. He was a partner in charge of accounting and assurance services for Deloitte & Touche's Orange County office from 1988 to 1996.

Directors include Gerald Rosenfeld, 53, chief executive of U.S. banking at Rothschild North America and formerly the head of investment banking at Lazard Freres & Co.

David Offensend, 47, another director, was formerly a Lehman Bros. banking and Bass family investment executive and a founding principal of Evercore Partners LLC.

Evercore, an investment firm started by former U.S. Deputy Treasury Secretary Roger Altman, holds a 50.46% stake in Resources Connection before the IPO.

The $103.5 million estimate for the IPO was provided only to calculate the SEC filing fee, and included the value of extra shares the underwriters can buy if demand for the stock is greater than expected.

The company plans to use net proceeds from the offering for such purposes as repaying debt, funding growth and providing working capital.

Credit Suisse First Boston and Deutsche Banc Alex. Brown will underwrite the stock sale with Robert W. Baird & Co.

The company has applied to trade on the Nasdaq exchange under the symbol "RECN."

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