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EX-2.1 - DEFINITIVE ASSET PURCHASE AGREEMENT - HireQuest, Inc. | assetpurchaseagreementexe.htm |
8-K - PRIMARY DOCUMENT - HireQuest, Inc. | hqi8-klink.htm |
HireQuest, Inc. Announces Acquisition of LINK Staffing
HireQuest Acquires 35 Franchised Locations in 9
States,
With Concentrations in Florida and Texas
GOOSE CREEK, South Carolina – February 16, 2021 –
HireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand
and temporary staffing services, today announced that its
subsidiary, HQ Link Corporation, has entered into a definitive
agreement to acquire the franchised operations of LINK Staffing, a
family-owned staffing company based in Houston, Texas, for
approximately $11 million in cash. The transaction does not include
working capital. The 35 acquired locations generated approximately
$57 million in system-wide sales in 2020.
“This
acquisition, combined with the pending acquisition of the assets of
Snelling Staffing, dramatically expands our commercial staffing
business,” commented Rick Hermanns, HireQuest’s
President and Chief Executive Officer. “Combined, these two
acquisitions should give us more than 80 commercial staffing
locations after normal attrition and consolidation, creating a
compelling national presence. We believe we are well positioned to
take advantage of the economic recovery as the economy begins to
normalize and have acquired LINK and Snelling at an opportune
moment. LINK’s concentrations in Florida and Texas strengthen
our presence in two of the fastest growing states in the
country.”
“HireQuest
continues to identify strategic inorganic opportunities to deploy
our capital to create long-term, sustainable value,” added
Mr. Hermanns. “These acquisitions should also accelerate
organic growth as our existing franchisees also seek expansion
opportunities. The two recently announced pending acquisitions will
help diversify our revenue streams and solidify our competitive
position.”
HireQuest
will fund this acquisition with cash on hand and its line of credit
with Truist Bank. Completion of the transaction is subject to a
number of closing conditions. Subject to such conditions, the
transaction is expected to close by the end of March 2021. During
the interim, both HireQuest and LINK offices are expected to remain
open for business without interruption.
Dividend
The
company also announced that on February 12, 2021, its Board of
Directors declared a quarterly cash dividend of $0.05 per share of
common stock expected to be paid on March 15, 2021 to shareholders
of record as of March 1, 2021.
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.
Important Cautions Regarding Forward-Looking
Statements
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 including
statements regarding the acquisition of certain assets of LINK
Staffing, Snelling Staffing, and the expected benefits from such
transactions including the increased ability to attract franchisees
or national accounts, increased earnings and revenue, creation of
value for franchisees, customers, and shareholders, and the effects
of expanded scale. All statements other than statements of
historical facts contained herein, including the statements
identified in the preceding sentence and other statements regarding
our future financial position and results of operations, liquidity,
business strategy, and plans and objectives of management for
future operations, are forward-looking statements. The words
“expect,” “intend,”
“anticipate,” “will,”
“believe,” “may,” “estimate,”
“continue,” “should,” “plan,”
“could,” “target,” “potential,”
“is likely,” and similar expressions as they relate to
the company, LINK Staffing, or Snelling Staffing, are intended to
identify forward-looking statements. We have based these
forward-looking statements largely on management’s
expectations and projections regarding future events and financial
trends that we believe may affect our financial condition,
operating performance, business strategy, and financial needs.
These forward-looking statements involve a number of risks and
uncertainties.
Important factors that could cause actual results to differ
materially from these forward-looking statements include: the
possibility that the transactions will not close including without
limitation, due to the failure to satisfy any closing conditions;
the possibility that the anticipated benefits of the asset
acquisitions will not be realized or will not be realized within
the expected time period; the risk that LINK Staffing’s or
Snelling Staffing’s business may not be integrated
successfully; the risk that disruption from the acquisitions may
make it more difficult to maintain existing business and
operational relationships; and several other factors.
Further information on risks we face is detailed in our filings
with the Securities and Exchange Commission, including our Form
10-K for the fiscal year ended December 31, 2019, our quarterly
reports on Form 10-Q filed since that date, and will be contained
in our SEC filings in connection with this acquisition. Any
forward-looking statement made by us herein speaks only as of the
date on which it is made. Factors or events that could cause our
actual results to differ may emerge from time to time, and it is
not possible for us to predict all of them. The Company undertakes
no obligations to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise, except as may otherwise be required by law.
Company
Contact:
HireQuest,
Inc.
Cory
Smith, CFO
(800)
835-6755
Email:
cssmith@hirequest.com
Investor
Relations Contact:
Hayden
IR
Brett
Maas
(646)
536-7331
Email:
brett@haydenir.com