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Westaff Inc. (NASD: WSTF) announced a deal today to sell its Australian and New Zealand operations. The buyer is Humanis Blue Pty. Ltd., a division of Melbourne, Australia-based Humanis Group Ltd.
Plans call for Humanis to pay approximately $13 million in cash at closing plus $2.5 million in one year. Westaff said the company will have net cash proceeds of $7.5 million from the sale after payment of taxes, banking and legal fees and the repayment of debts.
The sale is set to close in November 3.
Westaff's sale will leave the company with just U.S. operations. Westaff sold its United Kingdom business in March to Fortis Recruitment Group Ltd. for $6.8 million. The company reported a pre-tax gain of $2.0 million, which was later reduced by approximately $300,000 because of an amendment to the sales agreement. Westaff sold its operations in Norway and Denmark in June 2005.
Humanis Group is involved in buying recruitment firms, and Westaff said its Australian and New Zealand operations mark the company's first acquisition.
Westaff is a Walnut Creek CA-based commercial staffing firm.