HireQuest Inc. (NASDAQ: HQI) acquired Snelling Staffing, a 67-year-old staffing firm headquartered in Richardson, Texas. The price was approximately $17.3 million before working capital adjustments.

In addition, HireQuest in February announced it is acquiring Houston-based Link Staffing’s franchise relationships and other assets for a purchase price of approximately $11.1 million.

While HireQuest reported the closing of the Snelling Staffing deal on March 3, the deal was first announced last month.

“With this milestone acquisition, HireQuest has established a compelling second franchise opportunity in commercial staffing, utilizing one of the more recognized names in the industry,” HireQuest CEO Rick Hermanns said. “We now have two complimentary national networks — our traditional on-demand labor offering and now Snelling’s commercial staffing.”

At closing, HireQuest acquired 47 Snelling locations that generated approximately $87 million in system sales for 2020.

HireQuest will sell certain Snelling locations to third parties as part of its integration process. Negotiations are currently taking place over these locations. HireQuest expects the branches being sold will operate under a trademark license agreement resulting in continued royalty revenue.

HireQuest is based in Goose Creek, South Carolina, and has a network of 136 franchisee-owned offices in 30 states and the District of Columbia. It operates primarily in the light industrial and blue-collar segments of the staffing industry.

Meanwhile, completion of HireQuest’s Link Staffing deal is subject to customary closing conditions. 

Link’s 35 franchise locations in the deal generated approximately $57 million in systemwide sales in 2020. The offices are in nine states with concentrations in Florida and Texas. 

“This acquisition, combined with the pending acquisition of the assets of Snelling Staffing, dramatically expands our commercial staffing business,” HireQuest President and CEO Rick Hermanns said. “Combined, these two acquisitions should give us more than 80 commercial staffing locations after normal attrition and consolidation, creating a compelling national presence.” 

The company reported it will fund the Link acquisition with cash on hand and its line of credit with Truist Bank.  

Both HireQuest and Link offices will remain open for business without interruption.