GOOSE CREEK, S.C.--(BUSINESS WIRE)--HireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand and temporary staffing services, today announced that its subsidiary, HQ Snelling Corporation, has entered into a definitive asset purchase agreement to acquire certain assets of Snelling Staffing (https://www.snelling.com/), a 67-year-old staffing company headquartered in Richardson, Texas, for approximately $17.3 million before working capital adjustments. The assets include Snelling’s 48 locations which generated approximately $95 million in system-wide sales in 2020.
“This acquisition will significantly expand our scale and provide a new and compelling franchise opportunity in commercial staffing, complementing our existing direct dispatch model,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “For more than 60 years, the Snelling name has been synonymous with staffing excellence. HireQuest is excited to welcome the Snelling franchisees that have built the brand over the years, and we intend to maintain and advance this respected trade name going forward. We believe this acquisition will build on the strong foundation laid by both companies by allowing us not only to expand more fully into commercial staffing, but also to broaden our geographic reach to new states.”
“HireQuest is always looking to deploy its capital to its best use. Strategic acquisitions are a key component of our growth strategy. This acquisition will further diversify our business, broaden our national footprint and allow us to realize even greater operational leverage. We expect this added scale and diversity of offerings to make us more attractive to national accounts, intrigue potential new franchisees, and grow our revenue base and corresponding earnings while maintaining historical margins.”
HireQuest has agreed to guarantee the payment and performance of HQ Snelling Corporation’s obligations pursuant to the purchase agreement. HireQuest will fund this acquisition with existing cash on hand and a modest draw on its existing line of credit. Completion of the transaction is subject to a number of closing conditions. Subject to such conditions, the transaction is expected to close February 28, 2021. During the interim, both HireQuest and Snelling offices are expected to remain open for business without interruption.
About HireQuest
HireQuest, Inc. is a nationwide franchisor that provides on demand labor solutions primarily in the light industrial and blue-collar segments of the staffing industry for HireQuest Direct and HireQuest franchised offices across the United States. Through its national network of approximately 136 franchisee-owned offices in 30 states and the District of Columbia, HireQuest provides employment for approximately 80,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, and event services. For more information, visit www.hirequest.com.
