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Spherion Corp. (NYSE: SFN) signed a deal to buy Todays Staffing Inc. from CDI Corp. (NYSE: CDI) for $40 million in cash. The transaction is expected to close by the end of this quarter.
Todays Staffing posted revenue of $150 million in the 12 months ending June 30, with a gross margin of approximately 23%. The 25-year-old company focuses on clerical staffing and has more than 60 locations in the
Spherion CEO Roy Krause said Todays' focus on small- and mid-size accounts will boost Spherion's expansion of its retail offerings. And Todays margins are comparable to Spherion's.
"We think it's an exciting purchase for us," Krause said in a phone interview this morning. "I think it's a great opportunity to put two good brands and two good delivery teams together."
Spherion plans to integrate Todays' operations into its system by the end of 2007. The transaction will add to Spherion's earning in 2008.
Spherion also plans to continue the Todays brand, although Krause said there may be some back-office consolidaton.
Fort Lauderdale FL-based Spherion posted revenue of $1.9 billion in 2006. It had 660 locations in
Philadelphia-based CDI's remaining divisions include CDI Engineering Solutions; CDI IT Solutions; AndersElite Ltd., a
"The sale of Todays Staffing is a significant step in our strategy to selectively redeploy non-core assets as CDI focuses its future growth on engineering and IT project outsourcing as well as on professional staffing services in technical, executive and managerial areas," said Roger Ballou, president and CEO of CDI.
Stifel, Nicolaus & Co. Inc. served as investment banker for CDI. The investment banking firm would not comment on the deal.