GEE Group, a provider of professional staffing services and human resource solutions, announced that it has acquired Hornet Staffing, an Atlanta-based provider of staff augmentation services with national service capability. And Hornet offers staffing solutions to many markets serving large scale, “blue chip” companies in the information technology, professional, and customer service staffing verticals.
This acquisition is expected to be accretive to earnings and generate solid adjusted earnings before interest, taxes, depreciation and amortization. Under the terms of the sale and purchase agreement, GEE Group acquired 100% of the Hornet common stock for consideration including cash and seller financing. And the other terms of the transaction were not disclosed. Larry Bruce, Managing Director and Founder, will continue in his current capacity at Hornet and join the GEE Group National Sales Team to work with and assist all of the Company’s vertical leaders with new business development.
The Hornet acquisition enhances GEE Group’ s ability to compete effectively and will help the company secure new business and other large users of contingent and outsourced labor. And its workforce solutions include significant expertise in working with managed service providers (MSP) and vendor management systems (VMS).
GEE Group plans to continue its on-shore relationship based recruitment for select customers and utilize Hornet’s offshore recruiting capability with its state of the art technology across all of its staffing verticals on MSP, VMS and other large enterprise engagements. This gives the Company the flexibility and scalability to adjust hiring volumes based on project needs, ensuring efficiency without sacrificing quality.
KEY QUOTES:
“We are pleased to announce this strategic acquisition which will broaden GEE Group’s service capacity nationwide and enhance its ability to compete on and win large scale MSP and VMS staffing business. Hornet, led by its Managing Director and Founder, Larry Bruce, together with his on-shore and off-shore teams, brings to our Company significant staffing industry experience with extensive knowledge on serving large companies and managing high volume staffing engagements.”
“We are pleased to announce this exciting acquisition that will be accretive to earnings and generate solid non-GAAP adjusted EBITDA as well broaden our service capability, particularly to the Fortune 1000 and other large organizations. The acquisition fits within our strategic growth strategy, which includes making prudent investments to fuel both organic and acquisition growth. The Company has a strong balance sheet with a current ratio of 3.8 and substantial liquidity resources, both in cash and borrowing capacity. We will continue to seek acquisitions that fit our criteria and to deploy GEE Group’s capital judiciously, with the primary objective of maximizing shareholder value.”
– Chairman and Chief Executive Officer of GEE Group Derek Dewan
“I am thrilled to be joining GEE Group with its broad geographic coverage and its expansive range of human resources solutions and service offerings. We are excited to join forces with the Company to leverage our resources and expertise and cross-sell our service capability, particularly to large companies using MSP and VMS staffing models. Our teams look forward to working with all of the Company’s brand and vertical leaders to grow the combined organization and accelerate revenue growth and profitability.”
– Larry Bruce
