Staffing 360 Solutions Agrees to Acquire Headway Workforce Solutions
April 19 2022 - 8:36AM
Staffing 360 Solutions, Inc. (NASDAQ: STAF), a company executing an
international buy-integrate-build strategy through the acquisition
of staffing organizations in the United States and the United
Kingdom, announced today that it has signed an agreement to acquire
Headway Workforce Solutions for up to approximately $14 million in
a combination of stock and cash.
The acquisition is subject to the satisfaction
of certain closing conditions. Upon closing, $9 million will be
paid through issuance of shares of preferred stock that are
convertible into approximately 3.5 million common shares, and up to
$5 million cash through an earn-out.
With a 35-year history and a national reach of
human capital workforce solutions, Headway reported unaudited
revenues of $85 million in 2021.
Headway offers customized contract-based
workforce solutions in all 50 states, providing full scope
staffing. Headway’s leading blended business service model of
high-touch technology-driven-processes encompasses two integral
components:
- Recruitment & Staffing
(project-based streamlined recruiting process)
- Superior Recruitment Results
(through CORE: Center for Operational and Recruitment
Excellence)
CORE is based on a foundation of proprietary and
integrated processes and technologies to source the best candidates
via its flexible and customizable strategy and execution. A
proprietary database of three million candidates supports job
search campaign management and is augmented with advanced
e-recruiting technologies and integrated with a sophisticated
applicant tracking system (ATS).
Headway is one of the largest US providers of
survey research personnel with projects in the social sciences,
healthcare and marketing sectors. Its unique survey research niche
is a valuable tool and differentiator in the staffing industry,
providing these services in every zip code of the US.
Brendan Flood, Chairman, CEO and President of
STAF said, “Our industry is seeing a growing demand for labor, and
the combined solutions of our two companies will bring a valuable
dynamic to the business. The proven e-recruiting technologies
Headway designed not only can improve customer reach and
satisfaction, but also enhance operating margins.
“Our goal is to be a leading human capital
provider to our industry. We believe that the future leaders in
human capital will be the enterprises with scale that have taken
full advantage of technology and processes.”
About Headway Workforce
Solutions Since 1974, Headway has been laser focused on
building opportunities that help its clients overcome their
business obstacles. Character, commitment, and passion are the
cornerstones of its offering as it seeks to deliver
state-of-the-art workforce solutions across the nation. Its vision
is to partner with clients, candidates, employees, and stakeholders
to leverage sophisticated technology without sacrificing the
relationships that are the foundation of our industry.
About Staffing 360 Solutions,
Inc.Staffing 360 Solutions, Inc. is engaged in the
execution of an international buy-integrate-build strategy through
the acquisition of domestic and international staffing
organizations in the United States and United Kingdom. The Company
believes that the staffing industry offers opportunities for
accretive acquisitions and as part of its targeted consolidation
model, is pursuing acquisition targets in the finance and
accounting, administrative, engineering, IT, and light industrial
staffing space. For more information, visit
http://www.staffing360solutions.com. Follow Staffing 360 Solutions
on Facebook, LinkedIn and Twitter.
Forward-Looking StatementsThis
press release contains forward-looking statements, which may be
identified by words such as "expect," "look forward to,"
"anticipate," "intend," "plan," "believe," "seek," "estimate,"
"will," "project" or words of similar meaning. Forward-looking
statements are not guarantees of future performance, are based on
certain assumptions and are subject to various known and unknown
risks and uncertainties, many of which are beyond the Company's
control, and cannot be predicted or quantified; consequently,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Such risks and
uncertainties include, without limitation, our ability to retain
our listing on the Nasdaq Capital Market; market and other
conditions; the geographic, social and economic impact of COVID-19
on the Company’s ability to conduct its business and raise capital
in the future when needed; weakness in general economic conditions
and levels of capital spending by customers in the industries the
Company serves; weakness or volatility in the financial and capital
markets, which may result in the postponement or cancellation of
customer capital projects or the inability of the Company’s
customers to pay the Company’s fees; the termination of a major
customer contract or project; delays or reductions in U.S.
government spending; credit risks associated with the Company’s
customers; competitive market pressures; the availability and cost
of qualified labor; the Company’s level of success in attracting,
training and retaining qualified management personnel and other
staff employees; changes in tax laws and other government
regulations, including the impact of health care reform laws and
regulations; the possibility of incurring liability for the
Company’s business activities, including, but not limited to, the
activities of the Company’s temporary employees; the Company’s
performance on customer contracts; negative outcome of pending and
future claims and litigation; government policies, legislation or
judicial decisions adverse to the Company’s businesses; the
Company’s ability to access the capital markets by pursuing
additional debt and equity financing to fund its business plan and
expenses on terms acceptable to the Company or at all; and the
Company’s ability to comply with its contractual covenants,
including in respect of its debt agreements, as well as various
additional risks, many of which are now unknown and generally out
of the Company’s control, and which are detailed from time to time
in reports filed by the Company with the SEC, including quarterly
reports on Form 10-Q, reports on Form 8-K and annual reports on
Form 10-K. Staffing 360 Solutions does not undertake any duty to
update any statements contained herein (including any
forward-looking statements), except as required by law.
Investor Relations
Contact:Terri MacInnis, VP of IRBibicoff + MacInnis,
Inc.(818) 379-8500 x 2terri@bibimac.com
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