Kelly Completes Sale of Ayers Group, a Division of KellyOCG, to Keystone Partners
Kelly (Nasdaq: KELYA, KELYB) has finalized the sale of Ayers Group, a division of KellyOCG, to Keystone Partners. Ayers Group specializes in outplacement, executive coaching, and leadership development. The financial terms of the transaction were not disclosed. This sale is part of KellyOCG’s strategy to focus on global recruitment process outsourcing (RPO) and managed service provider (MSP) solutions. The move aligns with Kelly's broader goal to optimize its operations and reallocate capital towards higher-margin, growth-oriented specialties. Recent strategic actions by Kelly include divesting European staffing operations, monetizing non-core assets, and reducing ownership in PersolKelly.
- Completed sale of Ayers Group refocuses KellyOCG on core specialties like RPO and MSP.
- Unlocks incremental capital for redeployment in higher-margin, growth-oriented strategies.
- Part of a series of strategic actions to optimize Kelly's operating model and enhance competitive positioning.
- Terms of the sale were not disclosed, creating uncertainty regarding the financial impact.
- Recent divestments, including European staffing operations and non-core real estate, may affect short-term revenue streams.
Insights
Kelly's sale of Ayers Group to Keystone Partners is a calculated move to sharpen its focus on higher-margin and higher-growth specialties such as global recruitment process outsourcing (RPO) and managed service provider (MSP) solutions. This strategic realignment can potentially optimize Kelly's operating model and enhance its competitive edge.
By divesting non-core businesses, Kelly is likely freeing up
Historically, focusing on core competencies has been a successful strategy for many companies, as it allows for better resource allocation and improved performance in key areas. However, the short-term impact of the divestment may include restructuring costs and transition expenses, which could affect near-term profitability.
Retail investors should monitor how Kelly redeploys the capital from this sale and whether it translates into enhanced shareholder value through improved earnings and growth in core segments.
The sale of Ayers Group allows Kelly to streamline its operations and concentrate on its core competencies in the talent solutions market. This strategic divestiture is in line with recent industry trends where companies are increasingly focusing on niche segments to drive growth and profitability. By narrowing its focus to global RPO and MSP solutions, Kelly can capitalize on the growing demand for specialized talent management services.
In addition, the transaction reflects a broader industry shift towards outsourcing and managed services, which are becoming essential components of corporate talent strategies. The move to divest non-core operations is likely to enhance Kelly's ability to deliver high-value solutions tailored to the evolving needs of its clients, which can strengthen its market position.
However, the effectiveness of this strategy will depend on Kelly's execution and ability to leverage its expertise in the RPO and MSP markets. Investors should watch for subsequent moves that demonstrate a clear commitment to and investment in these high-growth areas.
TROY, Mich., June 12, 2024 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider, has completed the sale of Ayers Group, a division of KellyOCG, to Keystone Partners, a Silver Oak Services Partners LLC portfolio company. Ayers Group provides outplacement, executive coaching, and leadership development solutions to employers across a wide range of industries. Terms of the sale were not disclosed.
The sale of Ayers Group sharpens KellyOCG’s focus on global recruitment process outsourcing (RPO) and managed service provider (MSP) solutions. The transaction also unlocks incremental capital to redeploy toward Kelly’s specialty strategy.
“The sale of Ayers Group marks another step forward on KellyOCG’s journey to become the leading provider of global RPO and MSP solutions, which are key pillars of our strategy to meet the buyer where they are in their journey to total talent management,” said Tammy Browning, president, KellyOCG. “This transaction reflects our commitment to directing resources to specialties where KellyOCG is well positioned to compete and win over the long term.”
The sale of Ayers Group is the latest in a series of strategic actions Kelly has executed to further optimize its operating model, unlock capital, and strengthen its competitive position in higher-margin, higher-growth specialties. These actions include selling its European staffing operations; monetizing non-core real estate holdings and businesses; unwinding Kelly’s cross-shareholding arrangement with Persol and reducing the company’s ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; and selling its operations in Brazil and Russia.
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 500,000 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 2023 was
About The Ayers Group
The Ayers Group, headquartered in New York City, has helped companies adapt to change through comprehensive human resources and organizational development solutions. Learn more at www.ayers.com.
About Keystone Partners
Founded in 1982, Keystone Partners is a leading outplacement, executive coaching and leadership development consulting firm headquartered in Boston, Massachusetts. Keystone offers a range of services designed to help individuals and organizations successfully navigate the complexities of career management and development.
Forward-Looking Statements
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vi) our future business development, results of operations and financial condition, (vii) damage to our brands, (viii) dependency on third parties for the execution of critical functions, (ix) conducting business in foreign countries, including foreign currency fluctuations, (x) availability of temporary workers with appropriate skills required by customers, (xi) cyberattacks or other breaches of network or information technology security, and (xii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
KLYA-FIN
| ANALYST CONTACT: | MEDIA CONTACT: |
| Scott Thomas | Christian Taske |
| (248) 251-7264 | (248) 561-8823 |
| scott.thomas@kellyservices.com | christian.taske@kellyservices.com |
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