BGSF, Inc. Announces Agreement to Sell Light Industrial Business to Jobandtalent
- Aligns with Core Growth Strategy to Focus on Higher Margin Business Segments
BGSF, Inc., a growing national provider of workforce solutions, announced it has signed a definitive agreement to sell substantially all its Light Industrial segment (“InStaff”) assets to Jobandtalent (“J&T”), a leading job marketplace headquartered in Madrid, Spain, through their wholly-owned subsidiary, Sentech Engineering Services, Inc. The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.
“This strategic divestiture also allows us to deploy more capital into managed services and high-end consulting solutions as well as drive geographic expansion in Real Estate. Additionally, net proceeds from the sale provides us with added flexibility to pursue our ongoing acquisition strategy in addition to reducing debt.”
BGSF began as a workforce solutions provider in 2007 with 100% of the Company’s revenue in Light Industrial. As BGSF diversified into the Professional and Real Estate segments, InStaff continued to develop long-term client relationships through on-site engagements in logistics and warehousing, reaching a 96% client retention rate in fiscal 2021.
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“The sale of InStaff is an important step in our strategic focus on long-term value creation and will allow us to focus our strengths where we are strongest,” said Beth A. Garvey, President and CEO of BGSF. “This strategic divestiture also allows us to deploy more capital into managed services and high-end consulting solutions as well as drive geographic expansion in Real Estate. Additionally, net proceeds from the sale provides us with added flexibility to pursue our ongoing acquisition strategy in addition to reducing debt.”
Garvey added, “InStaff excelled through the pandemic with results returning to more normalized levels amidst the overwhelming nationwide labor shortage. We believe J&T is the right strategic owner for InStaff given their scale, digital engagement strategy and strong market position in logistics and warehousing. We believe the InStaff team will continue to thrive and grow in partnership with J&T, and we wish them well.”
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Felipe Navío, Co-CEO and Co-Founder of Jobandtalent, said: “The integration of InStaff demonstrates our ongoing commitment to growing our business in the US. This transaction will strengthen our global competitive position and will enable us to pursue new business opportunities at a rapid pace. This deal brings us yet another step closer to our ultimate mission of improving the employability and working conditions of millions. We are looking forward to welcoming the InStaff team and clients to the J&T family.”
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