Kelly Services Inc. (NASDAQ: KELYA, KELYB) struck a deal to sell its European business to Gi Group Holdings spa, a Milan, Italy-based staffing firm that ranks as the 19th-largest staffing firm in the world in terms of revenue. The deal is for the staffing business, and Kelly will continue to provide MSP, RPO and functional service provider services to customers in Europe as it does elsewhere.
“The sale of Kelly’s European staffing business demonstrates our commitment to taking bold, transformative action to optimize our portfolio and maximize value creation,” President and CEO Peter Quigley said in a press release.
“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.”
The deal is projected to close by March 31, 2024, subject to regulatory approvals and other customary closing conditions.
Kelly will receive cash proceeds of €100 million (US$105.6 million), plus adjustments for net working capital. There is also the possibility of an earnout of €30 million (US$31.7 million) payable in the second quarter of next year. The earnout is based on a multiple of an adjusted 2023 EBTIDA measure.
Gi Group said the deal highlights its growth trajectory.
“Today is an exciting step for Gi Group Holding, as we advance our ambition to grow both organically and through strategic acquisitions,” Gi Group Holding founder and CEO Stefano Colli-Lanzi said in a press release. “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 labor market.”
Kelly’s European staffing business serves customers in 14 countries across Europe.
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 more than 15 years and appeared on SIA’s 2023 Staffing 100 Europe list.