- Strategic redeployment of capital from recent APAC
transactions accelerates Kelly's specialty growth strategy
- Expands Kelly Education's industry-leading K-12 solutions
offering
- Creates growth opportunities in the $20-billion therapeutic services segment
TROY,
Mich., May 3, 2022 /PRNewswire/ -- Kelly (Nasdaq:
KELYA) (Nasdaq: KELYB) today announced that it has acquired
Pediatric Therapeutic Services (PTS), a specialty firm that
provides state and federally mandated in-school therapy services
including occupational therapy, physical therapy, speech-language
pathology, and mental and behavioral health services. Headquartered
in suburban Philadelphia, PTS
currently supports schools throughout Pennsylvania and Delaware and will continue to operate under
its own brand as part of Kelly Education as it leverages Kelly's
national profile to expand into other states. Terms of the
acquisition were not disclosed.
PTS has an impressive track record of annual growth and a
successful track record of securing contract renewals. This growth
reflects the surging demand for in-school therapeutic services as
the pandemic has taken a toll on students. According to the U.S.
Department of Education, Individuals with Disabilities Act (IDEA),
more than 7.3 million K-12 students are now entitled by U.S. law to
therapeutic benefits. Sourcing and managing a vast pool of service
providers can be complex and costly for schools already facing
budgetary constraints. PTS relieves that pain point and delivers a
proven, scalable platform that enables schools to contain costs,
increase efficiency, and improve student outcomes.
"We're thrilled to welcome PTS to Kelly as we continue to
redeploy capital and add high-margin, high-growth assets to our
core businesses," said Peter
Quigley, president and chief executive officer of Kelly.
"Earlier this year, we said we would use proceeds from our APAC
transactions to accelerate inorganic specialty growth, and that is
precisely what we are doing with this latest acquisition. PTS gives
Kelly an entry point into the fast-growing therapeutic services
market, a specialty domain where we didn't have a presence and
where our education clients are clearly in need of support."
To provide that support, PTS has developed innovative solutions
for delivering and managing therapeutic services that benefit
students, schools, teachers, families, and communities. Their
holistic approach means that students receive state-of-the-art
therapy from the right specialized talent, and schools are able to
focus on students rather than the administrative challenges of
managing therapeutic services.
"PTS shares Kelly Education's mission to support the whole
child, an approach to education that encompasses each student's
academic, social, physical, and emotional well-being," said
Nicola Soares, president of Kelly
Education. "PTS' expertise in therapeutic services will help us
create more inclusive learning environments in all classrooms, and
equip all of our K-12 service providers to better support ALL
learners. PTS will be able to leverage our client network of more
than 10,000 schools across the U.S."
"The opportunities for collaboration between our two
organizations are tremendous," said Diana
Fongheiser who co-founded PTS with Pam Hackett in 1998.
"From the start, it was clear that Kelly shared our values and
priorities when it comes to caring for the whole child. Aligning
PTS' mission with the Kelly brand is deeply satisfying," Hackett
added.
Newport Transaction Advisors, LLC, a subsidiary of Newport, LLC, and a leading strategic advisory
firm, served as the exclusive financial advisor to PTS throughout
the transaction.
This release contains statements that are forward looking in
nature and, accordingly, are subject to risks and uncertainties.
These factors include, but are not limited to, changing market and
economic conditions, the impact of the novel coronavirus (COVID-19)
outbreak, competitive market pressures including pricing and
technology introductions and disruptions, disruption in the labor
market and weakened demand for human capital resulting from
technological advances, competition law risks, the impact of
changes in laws and regulations (including federal, state and
international tax laws), unexpected changes in claim trends on
workers' compensation, unemployment, disability and medical benefit
plans, or the risk of additional tax liabilities in excess of our
estimates, our ability to achieve our business strategy, our
ability to successfully develop new service offerings, material
changes in demand from or loss of large corporate customers as well
as changes in their buying practices, risks particular to doing
business with government or government contractors, the risk of
damage to our brand, our exposure to risks associated with services
outside traditional staffing, including business process
outsourcing, services of licensed professionals and services
connecting talent to independent work, our increasing dependency on
third parties for the execution of critical functions, our ability
to effectively implement and manage our information technology
strategy, the risks associated with past and future acquisitions,
including risk of related impairment of goodwill and intangible
assets, risks associated with conducting business in foreign
countries, including foreign currency fluctuations, the exposure to
potential market and currency exchange risks relating to our
investment in Persol Holdings until its disposition, risks
associated with violations of anti-corruption, trade protection and
other laws and regulations, availability of qualified full-time
employees, availability of temporary workers with appropriate
skills required by customers, liabilities for employment-related
claims and losses, including class action lawsuits and collective
actions, our ability to sustain critical business applications
through our key data centers, risks arising from failure to
preserve the privacy of information entrusted to us or to meet our
obligations under global privacy laws, the risk of cyberattacks or
other breaches of network or information technology security, our
ability to realize value from our tax credit and net operating loss
carryforwards, our ability to maintain specified financial
covenants in our bank facilities to continue to access credit
markets, and other risks, uncertainties and factors discussed in
this release and in the Company's filings with the Securities and
Exchange Commission. Actual results may differ materially
from any forward-looking statements contained herein, and we
undertake no duty to update any forward-looking statement to
conform the statement to actual results or changes in the Company's
expectations.
About Kelly®
Kelly (Nasdaq: KELYA, KELYB) connects talented people to
companies in need of their skills in areas including Science,
Engineering, Education, Office, Contact Center, Light Industrial,
and more. We're always thinking about what's next in the evolving
world of work, and we help people ditch the script on old ways of
thinking and embrace the value of all workstyles in the workplace.
We directly employ nearly 350,000 people around the world and
connect thousands more with work through our global network of
talent suppliers and partners in our outsourcing and consulting
practice. Revenue in 2021 was $4.9 billion. Visit
kellyservices.com and let us help with what's next for
you.
About Kelly Education
Kelly Education powers the future of learning by helping make
early childhood education centers, K-12 school districts, and
institutions of higher education, stronger and more stable for
leaders, administrators, professors, teachers, and students. Kelly
Education is a business of Kelly, a global workforce solutions
provider that's always asking what's next in the world of work.
Learn more at KellyEducation.com.
About Pediatric Therapeutic Services, (PTS)
Pediatric Therapeutic Services (PTS) Inc., headquartered in
Conshohocken, Pennsylvania,
provides advanced therapy staffing solutions to school
districts, charter schools, and early intervention programs. The
organization integrates comprehensive therapy management with
related services and program supports to streamline operations,
reduce costs, and improve outcomes. PTS' innovative service
model, guided by our BudgetWatchTM technology, helps
transform classrooms into therapeutic environments that support all
learners. PTS was included on Inc. Magazine's list of the
5,000 fastest-growing, private companies in America for many years,
most recently in 2021.
Contact
Information:
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Media Contact:
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Analyst
Contact:
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Jane Stehney
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Jim Polehna
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Kelly
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Kelly
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jane.stehney@kellyservices.com
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polehjm@kellyservices.com
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248-765-6864
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248-244-4586
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SOURCE Kelly Services, Inc.