Kelly Services Inc. (NASDAQ: KELYA, KELYB) completed the sale of its European staffing business to Gi Group Holdings S.p.A., a Milan, Italy-based firm that ranks among the largest global staffing firms.

The sale involves Kelly’s European staffing business only. The company will continue providing MSP, RPO and its functional service provider offerings in Europe.

Today’s announcement represents a milestone as Kelly works to bolster profitable growth, President and CEO Peter Quigley said in a press release.

“By further streamlining the company’s operating model to focus on higher margin, higher growth business and unlocking significant capital, we have greater flexibility and capacity to invest where we can compete and win over the long term,” Quigley said.

Gi Group said the acquisition expands its operations in 11 countries, including France, Portugal and Switzerland. It also adds new markets for the company in Belgium, Luxembourg and Norway.

“We’re looking forward to welcoming hundreds of new colleagues to our family who will undoubtedly give a valuable contribution to further our mission of disseminating and implementing sustainable work all around the globe,” Gi Group founder and CEO Stefano Colli-Lanzi said in a press release.

The deal was first announced Nov. 2, 2023. It called for Kelly to receive €100 million (US$109.9 million) for the business as well as a possible earnout of €30 million (US$33.0 million) payable in the second quarter of this year.

Kelly Services ranks as the 12^th-largest staffing firm globally, while Gi Group ranks as the 19^th largest, according to SIA estimates.

With the sale, Kelly will have four reportable segments — professional and industrial; science, engineering and technology; education; and outsourcing and consulting. Its MSP, RPO and functional service provider businesses are global.

Kelly expects the sale of its European staffing business to improve its EBITDA margin, contributing approximately 30 basis points of favorable impact on a pro forma, full-year 2023 basis.