Attached files
| file | filename |
|---|---|
| 8-K - PRIMARY DOCUMENT - HireQuest, Inc. | hqi8-ksnelling.htm |
| EX-2.1 - ASSET PURCHASE AGREEMENT - HireQuest, Inc. | assetpurchaseagreement_sn.htm |
HireQuest, Inc. Announces Acquisition of Assets of Snelling
Staffing
Asset Purchase Adds 48 Locations in 24 States;
Expands Franchise Opportunity to Include Traditional Commercial
Staffing
GOOSE CREEK, South Carolina – February 1, 2021 –
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
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 Snelling
Staffing and the expected benefits from such transaction including
the increased ability to attract franchisees or national accounts,
increased earnings and revenue, maintenance of certain margins, 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 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 asset acquisition will not close including
without limitation, due to the failure to satisfy any closing
conditions; the possibility that the anticipated benefits of the
asset acquisition will not be realized or will not be realized
within the expected time period; the risk that Snelling
Staffing’s business may not be integrated successfully; the
risk that disruption from the acquisition 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