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EmployBridge CEO to lead combined staffing firm in Select, EmployBridge deal

January 06, 2015

The Select Family of Staffing Companies struck a deal to acquire rival industrial staffing firm EmployBridge in a move that could make it the largest industrial staffing firm in the US. EmployBridge CEO Tom Bickes will take the reins of the combined firm and Select CEO Steve Sorensen will retire from management to serve as board vice chairman.

Both Bickes and Sorensen ranked on Staffing Industry Analysts’ 2014 list of most influential people in staffing.

Terms of the transaction were not announced, but the deal is scheduled to close in February. Both businesses will operate under their existing brand names.

Select ranks as the 10th-largest US staffing and talent engagement firm with 2013 revenue of $2.03 billion. In comparison, EmployBridge ranks as the 17th-largest US staffing and talent engagement firm with 2013 revenue of $955.0 million.

Both companies also ranked on the list of largest US industrial staffing firms in 2014. Select ranked No. 3 with 2013 US industrial staffing revenue of $1.70 billion. EmployBridge ranked No. 10 with 2013 US industrial staffing revenue of $926 million.

The combined company will be based in Atlanta with significant operations centers in Santa Barbara, Calif., and Irving, Texas.

Other leadership changes include Select President Paul Sorensen taking the role of president at the combined company and EmployBridge President and CFO Shawn Poole becoming executive VP and CFO.

Select Chairman Al Aguirre, former corporate attorney at Sullivan & Cromwell, will remain chairman of the combined company and other Select board members will also remain on the board of the combined firm. They include Gary DiCamillo, former CEO of TAC Worldwide Companies; Steve Giusto, former CFO of Korn Ferry International Inc. (NYSE: KFY); and Greg Netland, former CEO of North America for Randstad Holding NV.

Select’s majority owners include Anchorage Capital Group LLC and BlueMountain Capital Management. The Santa Barbara, Calif.-based company had filed for a prepackaged Chapter 11 bankruptcy petition last year and emerged from the process less than two months later.

Select’s brands include Select Staffing (SelectRemedy in Illinois), Remedy Intelligent Staffing, Select Truckers Plus, Westaff and RemX Specialty Staffing. It also has a division focused on professional development training (Power Training Institute) and a managed services program (SinglePoint Solutions).

“This compelling transaction provides a unique opportunity to create the premier North American staffing company, with an expanded suite of services, broader geographic reach and enhanced professional opportunities for our combined team,” Steve Sorensen said in a press release. “We have tremendous respect for EmployBridge and its management team.”

EmployBridge is majority owned by Morgan Stanley Global Private Equity and Constitution Capital. Both will exit their stakes when the deal closes.

EmployBridge’s brands include ResourceMFG, ProLogistix and ProDrivers and the Employment Plus brands.

“Building on our shared values and complementary footprints, our new company will be even better positioned to deliver significant client benefits and enhanced levels of service,” Bickes said. “This combination is a testament to the strength of our brands and the accomplishments of our dedicated team members.”

The combined company will have approximately $3 billion in combined revenue, serve nearly 20,000 customers and have more than 490 branch and on-site locations across North America.