A company based in Goose Creek, which manages temporary workers and job needs on demand, bought another personnel business for $ 17.3 million, expanding its presence across the country.
HireQuest, which is a publicly traded company, announced on Monday that it had acquired Snelling Staffing, which was founded in 1951 and was headquartered in Texas.
The deal will allow HireQuest, which is currently worth more than $ 170 million on Wall Street, to take control of Snelling’s 48 business locations in 19 states.
These offices, which helped other companies obtain temporary and contract workers, generated $ 95 million for Snelling in 2020, according to a press release released by HireQuest.
“For more than 60 years, the name Snelling has been synonymous with personal excellence,” said Rick Hermanns, President and CEO of HireQuest, in a prepared statement announcing the acquisition. “We believe this acquisition will be built on the solid foundation established by both companies allowing us to not only expand more fully to the commercial staff, but also to expand our geographic reach to new states. “
HireQuest already had a big deal in a significant part of the country before its purchase from Snelling.
According to the company’s most recent financial records filed with the Securities and Exchange Commission, HireQuest had more than 147 offices in 32 states and the District of Columbia at the end of 2019.
A map of the company’s locations on its website shows that a significant number of HireQuest offices are located in the southeastern United States, including Florida, South Carolina and Georgia.
HireQuest does not actually have these local offices, according to the company’s financial records. Instead, the company operates as a franchise with other people controlling and owning local business locations.
HireQuest, however, employs the temporary workforce needed to hire companies in sectors such as construction, manufacturing, storage, hospitality and waste management.
“HireQuest is always looking to distribute its capital in the best possible way. Strategic acquisitions are a key component of our growth strategy. This acquisition will further diversify our business, expand our national presence and allow us to obtain even greater operational leverage “, added Hermanns in the press release.
At the end of 2019, HireQuest reported that its temporary workforce included more than 67,000 people, according to records it filed with the SEC.
HireQuest also employed another 50 corporate employees, most of whom were based in Goose Creek. It is not clear whether the number of jobs at the company’s headquarters will increase with the acquisition of Snelling.
The deal is expected to close in late February.
Reach Andrew Brown at 843-708-1830 or follow him on Twitter @andy_ed_brown.