Exhibit 99.1
Kelly Completes Sale of European Staffing Business to Gi Group Holdings S.P.A.
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Sharpens its focus on higher margin, higher growth global managed service provider (MSP) and recruitment
process outsourcing (RPO), and North American specialty outcome-based and staffing services |
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Accelerates transformation to deliver significantly improved net margin |
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Cash proceeds to be redeployed in pursuit of growth through organic and inorganic investments
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TROY, Mich., (January 03, 2024) Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider,
today announced it has completed the sale of its European staffing business to Gi Group Holdings S.P.A. (Gi). Kelly previously announced on November 2, 2023, that it had entered into a definitive agreement to sell the
business to Gi.
Today is a significant milestone in Kellys journey to become a more focused enterprise positioned to accelerate profitable
growth, said Peter Quigley, president and chief executive officer. By further streamlining the companys operating model to focus on higher margin, higher growth business and unlocking significant capital, we have greater
flexibility and capacity to invest where we can compete and win over the long term.
Kelly received cash proceeds of 100 million upon
closing the transaction. Additional proceeds from an earnout provision based on a multiple of an adjusted 2023 EBITDA measure would be payable in the second quarter of 2024 if achieved.
With the sale of Kellys European staffing business, the companys operating model comprises four reportable segments focused on global MSP and RPO
solutions, and North American specialty outcome-based and staffing services. The segments include Professional & Industrial; Science, Engineering & Technology; Education; and Outsourcing & Consulting Group. The company
retains its MSP, RPO, and functional service provider business, maintaining a global capability in these businesses in the North America, Asia Pacific, and Europe, Middle East, and Africa regions.
The sale also accelerates the companys efforts to significantly improve its EBITDA margin through its ongoing business transformation initiative,
contributing approximately 30 basis points of favorable impact on a pro forma, full year 2023 basis. By combining this impact with the benefit of a full year of expected transformation-related savings and current
top-line expectations, the company would expect to achieve a normalized, adjusted EBITDA margin in the range of 3.3% to 3.5%.
DLA Piper served as legal counsel to Kelly.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled
workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the
world, we connect more than 450,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we
empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2022 was $5.0 billion. Learn more
at kellyservices.com.