HireQuest closes acquisition of LINK Staffing
March 24, 2021
Acquires 35 Franchised Locations in Nine States, Further Expanding Franchise Opportunity to Include Traditional Commercial Staffing
GOOSE CREEK, SC – HireQuest, Inc. (Nasdaq: HQI), a national franchisor of on-demand and temporary staffing services, announced that its subsidiary, HQ Link Corporation, has closed the acquisition of the franchised operations of LINK Staffing, a family-owned staffing company based in Houston, Texas, for approximately $11.1 million in cash. The transaction does not include working capital. The 35 acquired locations generated approximately $57 million in system-wide sales in 2020.
“On the heels of the recent acquisition of 47 locations from Snelling Staffing, a 67-year-old staffing company, we have rapidly expanded our presence in commercial staffing, creating an additional revenue stream for HireQuest,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “Just as importantly, the combined branch networks of LINK and Snelling will create a dynamic platform from which we believe we can grow our commercial staffing business organically. Most of the LINK locations are expected to be rebranded under the well-respected Snelling name.”
Through the Snelling and LINK acquisitions, HireQuest added 82 locations before any location sales, that produced $144 million in system-wide sales for a total consideration of $28.4 million before working capital adjustments. HireQuest subsequently sold five locations to a third party and divested ten California offices in exchange for a continuing trademark license royalty.
HireQuest funded the LINK acquisition with existing cash on hand.
– BUSINESS WIRE
About HireQuest
HireQuest, Inc. is a nationwide franchisor that provides on-demand labor and commercial staffing solutions in the light industrial, blue-collar, and commercial segments of the staffing industry for HireQuest Direct, HireQuest, Snelling, and LINK franchised offices across the United States. Through its national network of over 200 franchisee-owned offices in more than 30 states and the District of Columbia, HireQuest provides employment for approximately 60,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, travel, and event services. For more information, visit www.hirequest.com.
