Daily NewsView All News
Temp Holdings Co. Ltd., a Japan-based staffing firm, and Kelly Services Inc. (NASD: KELYA) announced a strategic alliance today with Temp Holdings acquiring 4.8% of outstanding class A shares of Kelly.
Temp Holdings is paying $15.42 per share in the deal for $24.3 million.
In addition, Toshio Saburi, Temp Holdings' executive director, will join Kelly's board, and Kelly President and CEO Carl Camden, who already held a position on Temp Holdings' board of directors, will remain.
"By both companies cooperating, we can better address HR challenges of client firms when addressing needs in high-potential Asian HR markets and support a range of services of use to job seekers," said Yoshiko Shinohara, president of Temp Holdings.
Temp Holdings ranked No. 11 on Staffing Industry Analysts' 2009 list of largest global staffing firms. Kelly ranked No. 6.
Temp Holdings is the result of a merger in 2008 between Tempstaff and People Staff -- two Japan-based staffing firms.
Kelly had acquired shares of Tempstaff in 2005 and 2006.
In 2005, Kelly paid $18.5 million to acquire a 3.3% share of Tempstaff Co. Ltd., according to 10-K filings. Kelly purchased another 1.6% interest in Tempstaff for $15.6 million in 2006, bringing its ownership in that company to 4.9%.
"This relationship strengthens Kelly's global presence in key Asian markets, which remains a central component of our strategic growth plan, while allowing both companies to leverage one another's business relationships and expertise," Camden said in today's announcement of Temp Holdings' and Kelly's strengthened alliance.