Italian staffing firm Gi Group Holding is acquiring the European staffing business of US-based Kelly Services for a cash consideration of up to €130 million.

The transaction – with cash consideration of €100 million and an additional earnout potential of up to €30 million – is expected to close in the First Quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions.  

Under the terms of the agreement, Kelly will transition its European staffing business within its international operating segment to Gi Group Holding, providing staffing services to customers in 14 countries.

According to Gi Group, the agreement highlights the strong growth trajectory for Gi Group Holding as a global staffing and recruitment leader through an HR ecosystem that offers a full suite of tailored solutions through seven complementary brands in more than 30 countries worldwide.

"The transaction highlights a continued journey of growth, with this marking the 51st acquisition in the company's history since 1998," the group added.

Gi Group Holding Founder & CEO Stefano Colli-Lanzi said in a press release yesterday, "Today is an exciting step for Gi Group Holding, as we advance our ambition to grow both organically and through strategic acquisitions. Kelly's European staffing business will strengthen our presence and capabilities in Europe, allowing us to scale up and draw on Kelly's expertise in the region, while staying true to our commitment to contribute to the positive evolution of the labour market." 

Kelly Services President and CEO Peter Quigley said, "The sale of Kelly's European staffing business demonstrates our commitment to taking bold, transformative action to optimise our portfolio and maximise value creation."

"This transaction unlocks significant capital to pursue organic and inorganic investments in our chosen specialties," Quigley said. "Furthermore, it sharpens our focus on our higher margin, higher growth global MSP solutions, global RPO solutions, and specialty outcome-based and staffing services in North America."

In connection with this deal, Dinette Koolhaas, senior VP and president of Kelly International, will step down and leave the company. Koolhaas has been with Kelly for over 15 years and appeared on SIA's 2023 Staffing 100 Europe list.

Gi Group ranks as the 19^thlargest staffing firm in the world in terms of revenue, while Kelly Services ranks as the 12^thlargest staffing firm globally.