HireQuest, Inc. Announces Acquisition of The Dubin Group, Inc. and Dubin Workforce Solutions, Inc.
HireQuest, a national franchisor of staffing services, has announced its acquisition of The Dubin Group and Dubin Workforce Solutions based in Philadelphia. This strategic move, set to close in the first quarter of 2022, will enhance HireQuest's service offerings in the Northeast and introduce higher-margin executive placement services to its portfolio. The acquisition will utilize existing cash and a potential draw on its line of credit. Founder Kenny Dubin will remain involved to aid in development.
- Acquisition expands regional presence in Northeast.
- Entry into higher-margin executive placement services.
- Utilization of existing cash preserves financial stability.
- Financial strain possible due to the draw on the line of credit.
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HireQuest to Acquire Commercial Staffing and Executive Placement Providers in Philadelphia
GOOSE CREEK, SC / ACCESSWIRE / January 19, 2022 / HireQuest, Inc. (NASDAQ:HQI), a national franchisor of on-demand, temporary, and commercial staffing services, today announced that it has entered into a definitive agreement to acquire the operational assets of The Dubin Group, Inc. and Dubin Workforce Solutions, Inc., related founder-owned businesses in Philadelphia, Pennsylvania that provide executive placement services and commercial staffing, respectively.
"This acquisition not only expands our HireQuest Direct and Snelling offerings in the Northeast, but it also provides us a toehold into higher margin executive placement services in the region," commented Rick Hermanns, HireQuest's President and Chief Executive Officer, ""We are delighted that Kenny Dubin, the founder of these companies, has agreed to stay on to help further develop these offerings."
At the close of the transaction, the businesses will be converted to HireQuest's franchise model. HireQuest will fund this acquisition with existing cash on hand and, if necessary, a modest draw on its line of credit. Completion of this transaction is subject to a number of closing conditions. Subject to such conditions, the transaction is expected to close in the first quarter of 2022. During the interim, both The Dubin Group and Dubin Workforce Solutions will remain open for business without interruption.
About HireQuest
HireQuest, Inc. is a nationwide franchisor that provides on-demand labor and commercial staffing solutions in the light industrial, blue-collar, and commercial segments of the staffing industry for HireQuest Direct, HireQuest, Snelling, and Link franchised offices across the United States. Through its national network of over 210 franchisee-owned offices in more than 35 states and the District of Columbia, HireQuest provides employment for more than 60,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, medical, dental, travel, and event services. For more information, visit www.hirequest.com.
Important Cautions Regarding Forward-Looking Statements
This news release includes, and the company's officers and other representatives may sometimes make or provide certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, among others, statements with respect to future economic conditions; future revenue or sales and the growth thereof; operating results; anticipated benefits of the acquisition of the Dubin entities, the transition of such entities' operations to franchised offices, effects of expanded scale, or the status of integration of the Dubin entities with HireQuest's operations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. While the company believes these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. The company cannot assure you that these expectations will occur, and its actual results may be significantly different because of various risks and uncertainties discussed in the "Risk Factors" section and elsewhere in the company's most recent Annual Report on Form 10-K and subsequent filings with the SEC. Any forward-looking statement made by the company or its management in this news release is based only on information currently available to the company and speaks only as of the date on which it is made. The company and its management disclaim any obligation to update or revise any forward-looking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise, except as required by law.
Company Contact:
HireQuest, Inc.
David Hartley, Director of Corporate Development
(800) 835-6755
Email: cdhartley@hirequest.com
Investor Relations Contact:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
Email: hirequest@imsinvestorrelations.com
SOURCE: HireQuest Inc
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FAQ
What is the purpose of HireQuest's acquisition of The Dubin Group?
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