National staffing franchisor HireQuest Inc. (NASDAQ: HQI) announced Tuesday it closed on its acquisition of the franchised operations of Link Staffing, a Houston-based staffing provider, for approximately $11.1 million. Plans call for the branches to be rebranded as Snelling; HireQuest acquired Snelling earlier this year.
The 35 Link locations acquired had approximately $57 million in sales in 2020. Link Staffing has retained four locations in Texas.
HireQuest, based in Goose Creek, South Carolina, first announced the deal in February.
“On the heels of the recent acquisition of 47 locations from Snelling Staffing, a 67-year-old staffing company, we have rapidly expanded our presence in commercial staffing, creating an additional revenue stream for HireQuest,” President and CEO Rick Hermanns said. “Just as importantly, the combined branch networks of Link and Snelling will create a dynamic platform from which we believe we can grow our commercial staffing business organically.”
With the Link and Snelling acquisitions, HireQuest added 82 locations that had produced $144 million in systemwide sales for total consideration of $28.4 million before working capital adjustments. HireQuest subsequently sold five locations to a third party and divested 10 California offices in exchange for a continuing trademark license royalty.
HireQuest funded the Link acquisition with existing cash on hand.
Separately, Link announced it is continuing to provide staffing through its four Texas locations and the firm is committed to future growth under the leadership of Kathryn Mujezinovic and Michelle Bearden, both members of the founding family.