Privately held Select Staffing announced today plans to become a public company. The 11th-largest U.S. staffing firm intends to merge with Atlas Acquisition Holding Corp. (AMEX: AXG) in a deal that will allow the combined company to list on the New York Stock Exchange.

The combined company will be named Select Staffing Inc. In addition, Select's management team will remain in place with D. Stephen Sorensen as chairman and CEO; Paul Sorensen as president and Jeff Mitchell as CFO.

Atlas shareholders must approve the deal and other conditions must be met. Atlas shareholders are scheduled to meet Jan. 22.

The deal calls for Select Staffing shareholders to receive approximately 24.7 million of Atlas stock, or 42.5% of the combined company. Some Select second lien holders will receive securities convertible into as much as 13.4% of the combined company.

In addition, Atlas' founders will retire 1.0 million shares for no consideration, and outstanding Atlas warrants will be converted into approximately 1.7 million shares of stock.

Select shareholders will get an earn-out payment of up to 6.0 million shares based on 2010 EBITDA and stock performance.

The deal is valued at approximately $840 million.

D. Stephen Sorensen will own approximately 44% of common stock in the combined company, according to a filing with the U.S. Securities and Exchange Commission.

Atlas, based in Hobe Sound FL, was formed in January 2008 solely for the purpose of acquiring an operating business. Its management team includes Chairman and CEO James Hauslein and President Gaurav Burman. Hauslein is the former chairman and CEO of Sunglass Hut International.

Select had revenue of $1.09 billion from Dec. 29, 2008, through Oct. 4, according to an SEC filing.

Full-year 2008 revenue was $1.45 billion.

Select has 355 offices in 45 states. The company owns 202 of those offices and 153 are franchised.

It placed approximately 250,000 employees in 2008 and provided services to more than 20,000 staffing customers, according to an SEC filing.

Select has made a number of acquisitions over recent years including Westaff Inc. and Tandem Staffing Solutions. In 2006, Select acquired RemedyTemp Inc.

Select provides industrial, office/clerical, financial, technical and direct hire staffing. It also provides payrolling and professional employer organization services.

Select will retire approximately $200 million or more in total debt in the transaction.