Attached files
| file | filename |
|---|---|
| 8-K - Corporate Resource Services, Inc. | v195815_8k.htm |
| EX-2.1 - Corporate Resource Services, Inc. | v195815_ex2-1.htm |
| EX-10.1 - Corporate Resource Services, Inc. | v195815_ex10-1.htm |
| EX-10.3 - Corporate Resource Services, Inc. | v195815_ex10-3.htm |
| EX-10.2 - Corporate Resource Services, Inc. | v195815_ex10-2.htm |
|
For
Immediate Release
|
Contact:
|
|
|
Jay
Schecter
|
||
|
212-346-7960
|
||
|
jschecter@tristateemployment.com
|
Corporate
Resource Services Acquires Tri-Overload Staffing Inc.
Acquisition
Further Diversifies Business into the Insurance Industry
NEW YORK, NY (September 1, 2010) –
Corporate Resource Services,
Inc. (OTC: CRRS), a national provider of temporary and permanent staffing
services, announced today that it has acquired Tri-Overload Staffing Inc. from
an affiliate of Tri-State Employment Services, Inc. Tri-Overload
Staffing, now known as Insurance Overload Services, Inc., is in the business of
providing temporary and permanent employment staffing services and related
support services principally to the insurance industry. The purchase
price was approximately $6.2 million which was paid through the issuance of
approximately 8,590,000 shares of the Company's common stock.
Tri-Overload Staffing had sales of
approximately $20 million for the nine-month period ending March 31,
2010. The company has over 20 offices throughout the United
States.
“With this transaction, CRS continues
to build scale as well as diversify its offerings. We now have a
growing presence in the insurance industry, as well as in the light industrial
and clerical industries,” said Jay Schecter, CEO of Corporate Resource
Services. “With the completion of this acquisition and the addition
of Insurance Overload Services to our group, we have added, based on current
levels of business, over $100 million of annualized revenues to the company’s
operations since April of this year, when we acquired certain assets of GT
Systems. This is an important step for the Company and we plan to
continue aggressively our growth through additional acquisitions as well as
organically.”
Tri State
Employment Services is the Company’s largest stockholder. Robert
Cassera, the President and controlling stockholder of Tri-State,
commented: “This transaction furthers our goal at Tri-State to focus
our efforts on providing PEO services to our client base, while enabling CRS to
increase its breadth and depth of offerings in the staffing business, where it
has significant expertise and experience.”
The
transaction was reviewed and approved by a special independent committee of the
Board of Directors. The committee received a fairness opinion from
The BVA Group LLC, which indicated that the purchase price paid by CRS for
Tri-Overload, as well as the price per share of the Company's common stock used
to determine the number of shares to be issued, was fair from a financial point
of view to the unaffiliated stockholders of the Company.
About
Corporate Resource Services
Through
its three wholly-owned subsidiaries, Accountabilities, Corporate Resource
Development and Insurance Overload Services, Corporate Resource Services is a
national provider of diversified staffing, recruiting and consulting services,
including temporary staffing services, with a focus on light industrial
services, the insurance industry and clerical and administrative
support. The Company provides its services across a variety of
industries and to a diverse range of clients ranging from sole proprietorships
to Fortune 1000 companies. The Company conducts all of its business
in the United States through the operation of over 35 staffing and recruiting
offices.
Safe
Harbor Disclaimer: This press release contains “forward-looking statements”.
These statements relate to expectations concerning matters that are not
historical facts. Such forward-looking statements may be identified by words
such as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or
“will” or the negative of these terms or other comparable terminology. These
statements, and all phases of our operations, are subject to known and unknown
risks, uncertainties and other factors, including, but not limited to, our
ability to satisfy our working capital requirements; our ability to identify
suitable acquisition candidates or investment opportunities; our ability to
integrate any acquisitions made and fully realize the anticipated benefits of
these acquisitions; successor liabilities that we may be subject to as a result
of acquisitions; material employment related claims and costs as a result of the
nature of our business; our ability to retain key management personnel; the
financial difficulty of our clients, which may result in nonpayment of amounts
owed to us; significant economic downturns resulting in reduced demand for our
services; our ability to attract and retain qualified temporary personnel, who
possess the skills and experience necessary to satisfy our clients and other
risk factors as identified in our annual report on Form 10-K for the fiscal year
ended September 30, 2009, and our other reports filed with the Securities and
Exchange Commission, or SEC. Readers are cautioned not to place undue reliance
on these forward-looking statements. Our actual results, levels of activity,
performance or achievements and those of our industry may be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Except as
required by law, we undertake no obligation to update the forward-looking
statements. We refer to our Quarterly Report on Form 10Q for the
quarter and nine months ended June 20, 2010 for additional information regarding
the Company’s results of operations, balance sheet, liquidity and working
capital and strategy.
-end-