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Select Staffing's parent company, Koosharem Corp., struck a deal to buy assets of Resolve Staffing Inc. (OTCBB: RSFF.OB), a Cincinnati-based staffing firm and professional employer organization. Resolve's assets are being sold by its lenders, and the Select deal doesn't include Resolve's liabilities. The deal is set to close Feb. 8.
Resolve's new brand name will be Select Staffing and Resolve's PEO business will operate under the Employee Leasing Services brand. Select said the buy will boost its annual to sales to $1.6 billion.
[In a filing with the U.S. Sec, Resolve said it reached a deal with its bank to foreclose on loan collateral. The deal resulted in the sale of its assets.
"Acquisitions have become a big part of our growth strategy, and Resolve will give us opportunities in temporary staffing as well as an entree into the PEO business," Paul Sorensen, president of The Select Family of Companies, said in a statement. "Resolve has a solid base of quality clients and great strength in several niche markets, making this an excellent opportunity."
Resolve reported revenue of $123.1 million in the six months ended June 30, 2007, and a loss of $4.5 million, according to a filing with the U.S. Securities and Exchange Commission. The company said it had approximately 10,000 active PEO client employees and 4,000 temporary staffing employees as of June 30, 2007.
Resolve operated 70 offices in 20 states. It provides medical, truck driver, office/clerical, light industrial, customer service and professional staffing.
Resolve President and CEO Ron Heineman could not be reached for comment prior to press deadline.