HireQuest, Inc. (Nasdaq: HQI), a Goose Creek, SC-based national franchisor of on-demand and temporary staffing services, announced that its subsidiary, HQ Link Corporation, is to acquire the franchised operations of LINK Staffing, a family-owned staffing company based in Houston, Texas, for approximately $11m in cash.
The transaction does not include working capital. The 35 acquired locations generated approximately $57 million in system-wide sales in 2020.
HireQuest will fund this acquisition with cash on hand and its line of credit with Truist Bank. Completion of the transaction is subject to a number of closing conditions. Subject to such conditions, the deal is expected to close by the end of March 2021. During the interim, both HireQuest and LINK offices are expected to remain open for business without interruption.
Led by Rick Hermanns, President and Chief Executive Officer, HireQuest is a nationwide franchisor that provides on-demand labor solutions primarily in the light industrial and blue-collar segments of the staffing industry for HireQuest Direct and HireQuest franchised offices across the United States. Through its national network of approximately 136 franchisee-owned offices in 30 states and the District of Columbia, the company provides employment for approximately 80,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, and event services.