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Elwood Staffing acquired SOS Staffing Services Inc., creating a company with combined annual revenue of more than $750 million. The deal brings together two of the largest providers of industrial staffing in the U.S.
Elwood is based in Columbus, Ind., and ranks No. 14 on Staffing Industry Analysts’ 2012 list of largest U.S. industrial staffing firms. SOS ranks No. 13 on the list, and it is based in Salt Lake City. SOS operates as SOS Employment Group.
Mark Elwood, CEO of Elwood Staffing, will lead the combined firm.
The combined firms will have nearly 1,000 internal employees and serve more than 6,000 clients. In addition, the combined firm will have 170-plus offices in 33 states and Canada. There was virtually no geographic overlap between the two firms’ operations; only offices in Reno, Nev., and El Paso, Texas, overlap. Existing sales and service staff are expected to remain intact.
The transaction closed Feb. 15, and terms of the deal were not disclosed.
“This transaction combines the service capabilities, technologies, geographic reach and best practices of two successful companies. We are excited about what we know we can accomplish together,” Elwood said. “Infusing newly created corporate muscle and sophistication into our well-established cultures of entrepreneurship and innovation will make for a unique and very competitive staffing company business model. Our customers, temporary associates and staff members will all benefit.”
“We are working diligently to determine the rest of the executive staff and how that will shake out,” said Elwood’s Jenna Hladik, marketing and communications. “Our goal with the transaction, because we are in growth mode, is to keep as much talent as possible. Our expectation is that the reductions will be nominal.”
SOS will be a wholly owned subsidiary of Elwood Staffing, but operate more like a sister company. For now, SOS will retain its current branding, said Hladik. “The goal, though, is to ultimately operate as one company under one brand.”