BGSF, Inc. Announces Agreement to Sell Light Industrial Business to Jobandtalent
March 01 2022 - 6:45AM
Business Wire
Aligns with Core
Growth Strategy to Focus on Higher Margin Business Segments
BGSF, Inc. (NYSE: BGSF), a growing national provider of
workforce solutions (“BGSF” or the “Company”), today announced it
has signed a definitive agreement to sell substantially all its
Light Industrial segment (“InStaff”) assets to Jobandtalent
(“J&T”), a leading job marketplace headquartered in Madrid,
Spain, through their wholly-owned subsidiary, Sentech Engineering
Services, Inc. The transaction is expected to close in the first
quarter of 2022, subject to customary closing conditions.
BGSF began as a workforce solutions provider in 2007 with 100%
of the Company’s revenue in Light Industrial. As BGSF diversified
into the Professional and Real Estate segments, InStaff continued
to develop long-term client relationships through on-site
engagements in logistics and warehousing, reaching a 96% client
retention rate in fiscal 2021.
“The sale of InStaff is an important step in our strategic focus
on long-term value creation and will allow us to focus our
strengths where we are strongest,” said Beth A. Garvey, President
and CEO of BGSF. “This strategic divestiture also allows us to
deploy more capital into managed services and high-end consulting
solutions as well as drive geographic expansion in Real Estate.
Additionally, net proceeds from the sale provides us with added
flexibility to pursue our ongoing acquisition strategy in addition
to reducing debt.”
Garvey added, “InStaff excelled through the pandemic with
results returning to more normalized levels amidst the overwhelming
nationwide labor shortage. We believe J&T is the right
strategic owner for InStaff given their scale, digital engagement
strategy and strong market position in logistics and warehousing.
We believe the InStaff team will continue to thrive and grow in
partnership with J&T, and we wish them well.”
Felipe Navío, Co-CEO and Co-Founder of Jobandtalent, said: “The
integration of InStaff demonstrates our ongoing commitment to
growing our business in the US. This transaction will strengthen
our global competitive position and will enable us to pursue new
business opportunities at a rapid pace. This deal brings us yet
another step closer to our ultimate mission of improving the
employability and working conditions of millions. We are looking
forward to welcoming the InStaff team and clients to the J&T
family.”
About BGSF
With its home office in Plano, Texas, BGSF provides workforce
solutions to a variety of industries through its various divisions
in IT, Cyber, Finance & Accounting, Creative, Real Estate
(apartment communities and commercial buildings), and Light
Industrial. BGSF has integrated several regional and national
brands achieving scalable growth. The Company was ranked by
Staffing Industry Analysts as the 79th largest U.S. staffing
company and the 48th largest IT staffing firm in the 2021. The
Company’s disciplined acquisition philosophy, which builds value
through both financial growth and the retention of unique and
dedicated talent within BGSF’s family of companies, has resulted in
a seasoned management team with strong tenure and the ability to
offer exceptional service to our field talent and client partners
while building value for investors. For more information on the
Company and its services, please visit its website at
www.bgsf.com.
About Jobandtalent
Jobandtalent is a leading global digital temporary workforce
staffing marketplace, with over 100,000 workers placed on new jobs
so far. Disrupting the temporary labor market with the use of
technology and data, Jobandtalent is striving to improve working
conditions and the employability of millions. Jobandtalent’s
Workforce-as-a-Service platform offers a fully digitized and
innovative matchmaking service to its 1,300+ clients, including
large international clients with worldwide operations.
Headquartered in Madrid, Spain, the company is currently operating
in 9 countries across Europe and the Americas. With $1 billion in
revenue in 2021, Jobandtalent is one of the fastest growing
startups in this space. www.jobandtalent.com
Forward Looking Statements
The forward-looking statements in this press release are made
under the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
include, but are not limited to, statements regarding our future
financial performance and the expectations and objectives of our
board or management. The Company’s actual results could differ
materially from those indicated by the forward-looking statements
because of the failure to satisfy all of the conditions to the
closing of the proposed transaction, the risk that the proposed
transaction will not be consummated within the expected time period
or at all, the impact of the proposed transaction on the Company’s
business, and the various other risks and uncertainties including
those listed in Item 1A of the Company’s Annual Report on Form 10-K
and in the Company’s other filings and reports with the Securities
and Exchange Commission. All of the risks and uncertainties are
beyond the ability of the Company to control, and in many cases,
the Company cannot predict the risks and uncertainties that could
cause its actual results to differ materially from those indicated
by the forward-looking statements. When used in this press release,
the words “allows,” “believes,” “plans,” “expects,” “estimates,”
“should,” “would,” “may,” “might,” “forward,” “will,” “intends,”
“continue,” “outlook,” “temporarily,” “progressing,” and
“anticipates” and similar expressions as they relate to the Company
or its management are intended to identify forward-looking
statements. Except as required by law, the Company is not obligated
to publicly release any revisions to these forward-looking
statements to reflect the events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events.
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version on businesswire.com: https://www.businesswire.com/news/home/20220228005972/en/
Hala Elsherbini or Steven Hooser Three Part Advisors ir@bgsf.com
214.442.0016
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