TrueBlue, Inc. announced today that it has agreed to purchase privately
held SeatonCorp, adding complementary outsourcing solutions such as
high-volume employee recruitment, managed services provider and
strategic outsourced workforce management to its leading specialized
staffing and onsite workforce management offerings. The acquisition will
make TrueBlue the largest industrial staffing firm in the U.S.
“This is a combination of two great companies that share the same
purpose of putting people to work and changing lives,” TrueBlue CEO
Steve Cooper said. “Together, we can do more to get people to work and
help businesses be more productive by handling all their employment
sourcing, recruiting, screening, and workforce management needs.”
Chicago-based Seaton is the leading recruiting and outsourcing provider
through its PeopleScout, HRX, Staff Management | SMX, and StudentScout
brands. Its clients include many of the world’s most recognizable brands
in a broad range of industries such as airline, financial services,
retail, manufacturing, and transportation.
PeopleScout and Australia-based HRX specialize in recruitment process
outsourcing, which involves large-scale recruitment of full-time
employees for clients. Staff Management | SMX is an outsourced workforce
management provider that recruits and manages contingent employees on
site at clients’ facilities. StudentScout provides outsourcing services
supporting the admissions process of colleges and universities.
Cooper emphasized that after the transaction closes it will be business
as usual for PeopleScout, HRX, Staff Management | SMX, and StudentScout
customers and that they can expect the same great service from the
combined company. Current Seaton CEO Patrick Beharelle will become
President and COO of TrueBlue Outsourcing Solutions, a new group that
will include PeopleScout, HRX, Staff Management | SMX, and StudentScout.
Each service line will continue to report to Beharelle and be led by its
current executive team. The group will remain based in Chicago.
TrueBlue’s existing service lines, which offer specialized staffing
services including on-demand general labor, skilled labor, aviation
mechanics and truck drivers, will comprise TrueBlue Staffing Solutions.
This group will stay based at TrueBlue’s Tacoma headquarters and will
continue to serve a broad customer base in the construction,
manufacturing, transportation, aviation, waste, hospitality, retail, and
renewable energy industries. President and COO of TrueBlue Staffing
Solutions Wayne Larkin will lead the group.
“We are looking forward to being an important part of the TrueBlue team
and are committed to ensuring clients continue to receive the
world-class service that has led to nearly 100 percent client retention
over the past four years,” Beharelle said. “Joining with TrueBlue
significantly increases our ability to serve customers, offer additional
services, and do more to put people on the job.”
New Markets Provide Opportunities for Growth
“The use of recruitment process and workforce management outsourcing is
growing quickly. Adding PeopleScout and Staff Management | SMX
dramatically expands TrueBlue’s ability to provide these services to
customers and also adds to the company’s long-term growth potential,”
Cooper said. The international presence of PeopleScout, HRX and Staff
Management | SMX also opens new markets to TrueBlue.
“We’re excited we can join with this industry leader, which pioneered
outsourcing high-volume recruiting and workforce management, and with
their talented employees,” Cooper said. “This partnership accelerates
our strategy of driving growth by adding new services that can help our
customers be more productive.
“It’s a great fit, and we intend to ensure that they will continue to do
exactly what has made them so valuable to their clients. We are also
looking forward to making these outsourcing services more accessible to
customers who have relied on TrueBlue for their staffing needs.”
Transaction Details
TrueBlue is paying approximately $310 million in cash to acquire Seaton
from Leeds Equity Partners, a New York-based private equity firm,
subject to working capital adjustments. The purchase price is comprised
of a combination of cash on hand and a new credit facility to be entered
into prior to closing the transaction. The transaction is expected to
close early in the third quarter of 2014 following required regulatory
review. Upon closing, TrueBlue’s pro forma 2013 revenue increases by
$600 million to approximately $2.3 billion.
Robert W. Baird served as the exclusive financial advisor and K&L Gates
served as legal counsel to TrueBlue on this transaction.
Future Outlook
For the second quarter of 2014, TrueBlue estimates revenue in the range
of $451 million to $457 million and net income per diluted share for the
quarter of $0.22 to $0.26 which includes $0.06 of non-recurring costs
related to the acquisition of Seaton.
A presentation on Seaton, including financial information and expected
results, was included in an 8-K filed today and posted on our website at www.trueblue.com.
About SeatonCorp:
Seaton is a leading outsourcing and recruiting company that operates
under the Staff Management | SMX, PeopleScout, HRX, and StudentScout
service lines. Seaton was recognized as America's #1 job creator among
privately held companies by Inc. Magazine. In 2013, Seaton screened over
4.3 million candidates and recruited more than 250,000 employees into
permanent jobs in more than 70 countries. The company was founded in
1988.
About TrueBlue:
TrueBlue (NYSE: TBI) is a leading staffing provider that helps over
130,000 businesses be more productive through easy access to dependable
temporary labor. TrueBlue provides specialized staffing solutions and
onsite workforce management to industries that include construction,
manufacturing, transportation, aviation, waste, hospitality, retail,
renewable energy and more. Repeatedly recognized as one of Forbes
Magazine’s “Most Trustworthy Companies” for its accounting and
governance practices, TrueBlue connects approximately 375,000 people to
work annually across the U.S., Canada and Puerto Rico. Learn more
about TrueBlue at www.trueblue.com.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Words such as
“may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,”
“believes,” “estimates,” “targets,” “anticipates,” and similar
expressions are used to identify these forward-looking statements.
Examples of forward-looking statements include the expected completion
of the acquisition, the time frame in which this will occur, the
expected benefits of the acquisition and the expected financial
performance of TrueBlue following the acquisition and statements
relating to our future financial condition and operating results, as
well as any other statement that does not directly relate to any
historical or current fact. Forward-looking statements are based on our
current expectations and assumptions, which may not prove to be
accurate. These statements are not guarantees and are subject to risks,
uncertainties, and changes in circumstances that are difficult to
predict. Many factors could cause actual results to differ materially
and adversely from these forward-looking statements. Among these factors
are the occurrence of any event, change or other circumstances that
could give rise to the termination of the acquisition agreement, the
risk that the closing conditions, including regulatory approval, may not
be satisfied, risks related to disruption of management time from
ongoing business operations due to the acquisition and failure to
realize the benefits expected from the acquisition. Examples of
additional factors can be found in our most recent filings with the
Securities Exchange Commission. Any forward-looking statement speaks
only as of the date on which it is made, and we assume no obligation to
update or revise any forward-looking statement, whether as a result of
new information, future events, or otherwise, except as required by law.
Copyright Business Wire 2014