EX-99.1
4
press_release.htm
PRESS RELEASE
press_release
HireQuest, Inc. Closes Acquisition of Snelling
Staffing
Expands Franchise Opportunity to Include Traditional Commercial
Staffing
GOOSE CREEK, South Carolina
- March 2, 2021 -
HireQuest,
Inc. (Nasdaq: HQI), a national franchisor of on-demand and
temporary staffing services, today announced that its subsidiary,
HQ Snelling Corporation, has closed the acquisition of certain
assets of Snelling Staffing (
https://www.snelling.com/
),
a 67-year-old staffing company headquartered in Richardson, Texas,
for approximately $17.3 million before working capital
adjustments.
"With
this milestone acquisition, HireQuest has established a compelling
second franchise opportunity in commercial staffing, utilizing one
of the more recognized names in the industry", commented Rick
Hermanns, HireQuest's President and Chief Executive Officer.
"We now have two complimentary national networks, our
traditional on-demand labor offering and now Snelling's
commercial staffing".
At
close, HireQuest acquired 47 Snelling locations that generated $87
million in system sales for 2020. As part of its standard
integration process, HireQuest has determined that it is in its
strategic interest to sell certain Snelling locations to third
parties. The company is currently in negotiations regarding these
locations and expects to complete the transactions in the coming
weeks. It is HireQuest's expectation that certain of the
branches being sold will be operated under a trademark license
agreement resulting in continued royalty revenues to
HireQuest.
HireQuest
funded this acquisition with existing cash on hand and a draw on
its existing line of credit.
About HireQuest
HireQuest,
Inc. is a nationwide franchisor that provides on-demand labor and
commercial staffing solutions in the light industrial, blue-collar,
and commercial segments of the staffing industry for HireQuest
Direct, HireQuest, and Snelling franchised offices across the
United States. Through its national network of over 180
franchisee-owned offices in more than 30 states and the District of
Columbia, HireQuest provides employment for approximately 80,000
individuals annually that work for thousands of customers in
numerous industries including construction, light industrial,
manufacturing, hospitality, clerical, travel, and event services.
For more information, visit
www.hirequest.com
.
Important Cautions Regarding Forward-Looking
Statements
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 including
statements regarding the acquisition of certain assets of Snelling
Staffing and the expected benefits from such transaction including
increased earnings and revenue and the effects of expanded scale.
In addition, this release contains forward-looking statements
regarding potential asset sale transactions and the effects of
those transactions including expectations regarding completion of
these transactions and the potential execution and effects of a
trademark license agreement. All statements other than statements
of historical facts contained herein, including the statements
identified in the preceding sentences and other statements
regarding our future financial position and results of operations,
liquidity, business strategy, and plans and objectives of
management for future operations, are forward-looking statements.
The words "expect", "expectation,"
"intend", "anticipate", "will,"
"believe", "may", "estimate,"
"continue", "should", "plan,"
"could", "target", "potential,"
"is likely", and similar expressions as they relate to
the company or Snelling Staffing, are intended to identify
forward-looking statements. We have based these forward-looking
statements largely on management's expectations and
projections regarding future events, negoatiations, and financial
trends that we believe may affect our financial condition,
operating performance, business strategy, and financial needs.
These forward-looking statements involve a number of risks and
uncertainties.
Important factors that could cause actual results to differ
materially from these forward-looking statements include: the
possibility that the asset sale transactions or trademark license
arrangement will not be executed or close including without
limitation, due to the failure of the parties to reach an
agreement; the possibility that the anticipated benefits of the
asset acquisition or asset sales will not be realized or will not
be realized within the expected time period; the risk that Snelling
Staffing's business may not be integrated successfully; the
risk that disruption from the acquisition may make it more
difficult to maintain existing business and operational
relationships; and several other factors.
Further information on risks we face is detailed in our filings
with the Securities and Exchange Commission, including our Form
10-K for the fiscal year ended December 31, 2019, our quarterly
reports on Form 10-Q filed since that date, our current report on
Form 8-K filed with the SEC on February 1, 2021,and will be
contained in our SEC filings in connection with this acquisition.
Any forward-looking statement made by us herein speaks only as of
the date on which it is made. Factors or events that could cause
our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. The Company
undertakes no obligations to publicly update any forward-looking
statements, whether as a result of new information, future
developments or otherwise, except as may otherwise be required by
law.
Company
Contact:
HireQuest,
Inc.
Cory
Smith, CFO
(800)
835-6755
Email:
Cssmith@hirequest.com
Investor
Relations Contact:
Hayden
IR
Brett
Maas
(646)
536-7331
Email:
brett@haydenir.com

EX - 99 . 1 4 press _ release . htm PRESS RELEASE press _ release HireQuest , Inc . Closes Acquisition of Snelling Staffing Expands Franchise Opportunity to Include Traditional Commercial Staffing GOOSE CREEK , South Carolina - March 2 , 2021 - HireQuest , Inc . ( Nasdaq : HQI ) , a national franchisor of on - demand and temporary staffing services , today announced that its subsidiary , HQ Snelling Corporation , has closed the acquisition of certain assets of Snelling Staffing ( https://www.snelling.com/ ) , a 67 - year - old staffing company headquartered in Richardson , Texas , for approximately $ 17.3 million before working capital adjustments . " With this milestone acquisition , HireQuest has established a compelling second franchise opportunity in commercial staffing , utilizing one of the more recognized names in the industry " , commented Rick Hermanns , HireQuest 's President and Chief Executive Officer . " We now have two complimentary national networks , our traditional on - demand labor offering and now Snelling 's commercial staffing " . At close , HireQuest acquired 47 Snelling locations that generated $ 87 million in system sales for 2020 . As part of its standard integration process , HireQuest has determined that it is in its strategic interest to sell certain Snelling locations to third parties . The company is currently in negotiations regarding these locations and expects to complete the transactions in the coming weeks . It is HireQuest 's expectation that certain of the branches being sold will be operated under a trademark license agreement resulting in continued royalty revenues to HireQuest . HireQuest funded this acquisition with existing cash on hand and a draw on its existing line of credit . About HireQuest HireQuest , Inc . is a nationwide franchisor that provides on - demand labor and commercial staffing solutions in the light industrial , blue - collar , and commercial segments of the staffing industry for HireQuest Direct , HireQuest , and Snelling franchised offices across the United States . Through its national network of over 180 franchisee - owned offices in more than 30 states and the District of Columbia , HireQuest provides employment for approximately 80,000 individuals annually that work for thousands of customers in numerous industries including construction , light industrial , manufacturing , hospitality , clerical , travel , and event services . For more information , visit www.hirequest.com . Important Cautions Regarding Forward - Looking Statements This release contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding the acquisition of certain assets of Snelling Staffing and the expected benefits from such transaction including increased earnings and revenue and the effects of expanded scale . In addition , this release contains forward - looking statements regarding potential asset sale transactions and the effects of those transactions including expectations regarding completion of these transactions and the potential execution and effects of a trademark license agreement . All statements other than statements of historical facts contained herein , including the statements identified in the preceding sentences and other statements regarding our future financial position and results of operations , liquidity , business strategy , and plans and objectives of management for future operations , are forward - looking statements . The words " expect " , " expectation , " " intend " , " anticipate " , " will , " " believe " , " may " , " estimate , " " continue " , " should " , " plan , " " could " , " target " , " potential , " " is likely " , and similar expressions as they relate to the company or Snelling Staffing , are intended to identify forward - looking statements . We have based these forward - looking statements largely on management 's expectations and projections regarding future events , negoatiations , and financial trends that we believe may affect our financial condition , operating performance , business strategy , and financial needs . These forward - looking statements involve a number of risks and uncertainties . Important factors that could cause actual results to differ materially from these forward - looking statements include : the possibility that the asset sale transactions or trademark license arrangement will not be executed or close including without limitation , due to the failure of the parties to reach an agreement ; the possibility that the anticipated benefits of the asset acquisition or asset sales will not be realized or will not be realized within the expected time period ; the risk that Snelling Staffing 's business may not be integrated successfully ; the risk that disruption from the acquisition may make it more difficult to maintain existing business and operational relationships ; and several other factors . Further information on risks we face is detailed in our filings with the Securities and Exchange Commission , including our Form 10 - K for the fiscal year ended December 31 , 2019 , our quarterly reports on Form 10 - Q filed since that date , our current report on Form 8 - K filed with the SEC on February 1 , 2021 , and will be contained in our SEC filings in connection with this acquisition . Any forward - looking statement made by us herein speaks only as of the date on which it is made . Factors or events that could cause our actual results to differ may emerge from time to time , and it is not possible for us to predict all of them . The Company undertakes no obligations to publicly update any forward - looking statements , whether as a result of new information , future developments or otherwise , except as may otherwise be required by law . Company Contact : HireQuest , Inc . Cory Smith , CFO ( 800 ) 835 - 6755 Email : Cssmith@hirequest.com Investor Relations Contact : Hayden IR Brett Maas ( 646 ) 536 - 7331 Email : brett@haydenir.com