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Command Center Inc. (OTCBB: CCNI), a Post Falls, Idaho-based provider of industrial staffing, acquired DR Services of Louisiana LLC., a Kenner, Louisiana-based provider of natural disaster relief and recovery services. DR Services posted revenue of $5 million in 2011.
Command Center will pay $300,000 in cash plus 1.5 million in stock under the deal with $150,000 in cash paid at closing and the remainder to be paid in six monthly installments. In addition, Command Center may provide up to 1.5 million more shares of stock depending on DR Services’ performance.
“DR Services’ approach to providing labor solutions, particularly in disaster-related situations, is an excellent fit with our own philosophy of how to ‘exceed expectations every time,’” said Command Center Chairman and CEO Glenn Welstad. “Fortunately, we had the advantage of working together on several disaster relief and recovery projects in 2011, and it became increasingly apparent to all of us that the combination of the two companies made tremendous sense.”
DR Services former owners will remain with Command Center after the sale. The former owners include Howard Rush, Gerald Avery and Edward Schmidt Jr.
Separately, Command Center reported today that it has been sued by former CFO Jeff Mitchell, who alleges breach of contract, according to a filing with the U.S. Securities and Exchange Commission. The company reported it believes the complaint is without merit. Mitchell had resigned late last year.