Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, today announced two acquisitions as well as the refinancing of Staffing 360’s balance sheet with current lenders. The company acquired Atlanta-based firstPRO Georgia, a US-based company targeting IT staffing and accounting and finance staffing, and CBS Butler Holdings Limited, a UK-based firm specializing in engineering and IT staffing services.

The firstPRO Georgia deal closed Sept. 15, for purchase consideration of $8.5 million. The company’s annual revenue is approximately $20 million – about 75% from accounting and finance and 25% from IT – and it counts 30 internal staff in its one office.

The acquisition of London-based CBS Butler Holdings closed today for purchase consideration of £17.8 million (US$24.1 million). CBS Butler has annual revenue of £50 million (approximately USD$68 million), with 75% from engineering and 25% from IT. It counts about 70 internal employees.

On an aggregate basis, Staffing 360 expects the two acquisitions to add approximately $85 million to its top line, resulting in $265 million of annualized revenue, and more than double the pro forma adjusted EBITDA of Staffing 360’s overall business to $11 million on an annualized basis.

Consistent with its previous acquisitions, Staffing 360 will retain all of the branding of the acquired businesses. Most executives of the acquired firms will remain in place in their current roles; Neil Ellison at firstPRO will assume the title of president of that business unit.

Staffing 360 also announced it refinanced a $40 million, 12% senior note with a three-year term and zero amortization prior to maturity. It renegotiated terms of the existing receivable facility for a $25 million revolver and accordion to $50 million as the business grows, resulting in lower financing costs and increased availability.

“These developments are a game-changer for our company, vaulting us much closer to our goal of becoming a $300 million annualized revenue business,” said Staffing 360 Executive Chairman Brendan Flood. 

“While our team has been working diligently behind the scenes to make these complex transactions a reality, we understand our investors have been very patient as we have executed a multi-year strategy of driving operational improvements and financial governance,” Flood said. “We believe this refinancing of our balance sheet and simultaneous closing of two acquisitions will help us unlock significant value, especially as we leverage our projected positive operating cash flow from these transactions to drive additional organic and acquisitive growth.”