Global specialty talent solutions provider Kelly announced it has entered into a definitive agreement to buy Motion Recruitment Partners (MRP) from Littlejohn & Co., a private investment firm based out of Greenwich, Connecticut.
Under the terms of the deal, Kelly will acquire MRP for $425 million in cash to be paid at close, with additional earnout potential of up to $60 million based on specific performance criteria. And Kelly expects to fund the transaction through debt and available capital, including the rapid redeployment of over $100 million from the sale of Kelly’s European staffing operations in January 2024. The deal is expected to close in the second quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions.
The deal will significantly build upon Kelly’s market-leading solutions portfolio, which includes Kelly Science, Engineering & Technology (SET), a leading provider of technology, telecommunications, and government workforce solutions; KellyOCG, a top provider of RPO and managed service provider (MSP) solutions; Kelly Professional & Industrial, one of the ten largest industrial staffing providers; and Kelly Education, the largest provider of K-12 education talent.
Following the closing of the deal, MRP will deliver services through its existing operating companies and brands to expand Kelly’s capabilities and significantly increase market share across many areas.
The acquisition of MRP will be the largest in Kelly’s history. It follows eight acquisitions completed and integrated successfully since 2017 as part of the company’s strategy to pursue inorganic investments in higher-margin and higher-growth specialties. And Kelly’s inorganic strategy has been enabled by a series of strategic actions to unlock significant capital and optimize the Company’s operating model, including selling its European staffing operations, monetizing non-core real estate holdings, unwinding its cross-shareholding arrangement with Persol, reducing its ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; and selling its operations in Brazil and Russia.
Houlihan Lokey is Kelly’s financial advisor, and Jasso Lopez PLLC is its legal counsel. Robert W. Baird is MRP’s financial advisor, and Baker Hostetler is its legal counsel.
KEY QUOTES:
“We look forward to welcoming MRP to the Kelly team in what is a transformational step forward on our journey to sharpen the Company’s focus on higher-margin, higher-growth specialty outcome-based and staffing services in North America, and global RPO and MSP solutions. MRP’s portfolio of businesses are an exceptional fit for Kelly’s SET and OCG segments, adding extensive expertise and an established presence in attractive end-markets. Likewise, Kelly’s breadth of resources and culture of collaboration form a strong foundation upon which MRP will reach extraordinary new heights.”
- Peter Quigley, president and chief executive officer, Kelly
“There are so many valuable and complementary aspects to this new partnership and both companies have a lot to learn and gain from each other. We are excited to begin this new chapter to become part of the exceptional Kelly story and are very motivated to be a driving force behind the significant growth goals that lie ahead.”
- Beth Gilfeather, chief executive officer, MRP
“We are proud to have partnered with MRP’s strong leadership team during an important period of growth and evolution. During our ownership period, MRP executed on a number of organic and inorganic initiatives that positioned it as a premier talent solutions provider with particular strength and depth in the technology market. We wish the company continued success as part of Kelly moving forward.”
- Drew Greenwood, managing director, Littlejohn
