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Staffing 360 acquires North Carolina commercial staffing firm for $12 million

August 28, 2018

Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, acquired Key Resources Inc., a provider of distribution and supply chain personnel, from owner Pamela Whitaker in a deal signed Monday. Key Resources is based in Greensboro, NC, and has four offices. It generated revenue of approximately $35 million for the 12 months ended last month.

The purchase price was approximately $12.2 million, according to a filing with the US Securities and Exchange Commission. It included approximately $8.1 million paid at closing and earnouts of approximately $2.03 million payable on Aug. 27, 2019, and Aug. 27, 2020.

 “The acquisition of Key Resources allows us to easily assimilate our strategic growth plan into the Triad area market of North Carolina,” said Paul Polito, president of commercial staffing (US) of Staffing 360 Solutions.

Key Resources’ brand will remain. Whittaker, the former owner, will transition out over six months but the other executives will remain, reporting to Polito.

Also, in an SEC filing, Staffing 360 noted the Jackson Omnibus made a new senior debt investment of approximately $8.4 million in the company in exchange for a senior secured note in the principal amount of approximately $8.4 million. A portion of the proceeds of the sale of the new Jackson note were used to complete the Key Resources transaction.

Jackson Investment Group, led by Jackson Healthcare chairman and CEO Richard Jackson, in January provided $7.4 million in financing to Staffing 360.


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