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Labor SMART Inc. (OTCBB: LTNC), a Hiram, Ga.-based staffing provider, acquired substantially all of the operating assets of Florida-based Qwik Staffing Solutions Inc.
The transaction, which closed May 2, was effective May 6, 2013.
Labor SMART paid $150,000 cash and will pay 6.5 percent of net receivables collected over the next 14 months for a capped net amount of $320,000.
All offices will be renamed Labor SMART, and key executives from Qwik Staffing Solutions will stay on for a limited basis during the transition.
Qwik Staffing Solutions Inc. specializes in on-demand labor for the construction and industrial sectors and operates branches in Jacksonville, Orlando and Tampa, Fla., bringing Labor SMART’s branch count to 13 branches located in eight states. Labor SMART intends to expand to 18 to 20 branches in 12 states this year.
“Our ability to acquire established on-demand labor companies and entrench them with our proven business model will now enable us to strategically grow our company on an even greater scale,” said Labor SMART CEO Ryan Schadel. “This acquisition brings our current projected revenues to $15.5 million dollars without the addition of any further branches in 2013, which is highly unlikely.”
Labor SMART reported revenue of $1.0 million in April, up from $515,723 in the same month last year. The firm provides skilled and unskilled labor.