Atlantic International Corp. Acquires Lyneer Staffing Solutions
Atlantic International Corp. (OTC: ATLN), formerly known as SeqLL Inc. (OTC: SQL), has announced the acquisition of Lyneer Staffing Solutions. This strategic move creates a national staffing and workforce solutions company with annual revenues exceeding $400 million and an adjusted EBITDA of $5.4 million as of December 31, 2023. The acquisition involves a $35 million promissory note and $60 million in restricted stock. Lyneer serves over 1,100 customers, including major companies like UPS, DHL, FedEx, and PepsiCo. The CEO of Atlantic, Jeffrey Jagid, aims to leverage this acquisition for strategic growth, focusing on medical, IT, and engineering staffing. Additionally, Prateek Gattani of IDC Technologies, the principal shareholder, has been appointed Chairman. The company aims to uplist to a National Securities Exchange soon.
- Annual revenues of $400 million.
- Adjusted EBITDA of $5.4 million.
- Acquired Lyneer Staffing Solutions, servicing over 1,100 customers.
- Strategic growth in medical, IT, and engineering staffing planned.
- Acquisition includes major clients like UPS, DHL, and PepsiCo.
- Aims to uplist to a National Securities Exchange.
- Acquisition involves a $35 million promissory note.
- Issuance of $60 million in restricted shares could lead to shareholder dilution.
Insights
The acquisition of Lyneer Staffing Solutions by Atlantic International Corp. brings a significant change to the company's financial landscape. The combined entity reports over
However, the structure of the acquisition raises some concerns. The deal involves a
In the short term, the acquisition presents an opportunity for revenue growth and market expansion. Still, investors should closely monitor how well the integration of Lyneer progresses and watch for any dilution effects on their holdings. The long-term attractiveness hinges on Atlantic’s ability to leverage these new resources effectively and execute its consolidation strategy efficiently.
The acquisition positions Atlantic International Corp. as a major player in the staffing and outsourced services industry. Lyneer’s extensive client base in diverse sectors like logistics, finance and professional services gives Atlantic a substantial market footprint. The strategic value lies in Lyneer’s established reputation and operational framework, which can serve as a platform for further growth and acquisitions.
The staffing industry is highly fragmented, with many small and mid-sized firms ripe for consolidation. Atlantic's stated intention to pursue additional acquisitions aligns well with industry trends, where economies of scale and broader service offerings can enhance competitiveness. Moreover, Lyneer's established relationships with enterprise-scale clients provide cross-selling opportunities for Atlantic’s other services.
However, the market for staffing and workforce solutions is highly competitive and maintaining service quality and customer satisfaction post-acquisition will be critical. Atlantic will need to demonstrate operational excellence and effective integration to capitalize fully on this acquisition and drive long-term shareholder value.
Creates National Strategic Staffing, Outsourced Services and Workforce Solutions Company with Over
ENGLEWOOD CLIFFS, N.J., June 21, 2024 (GLOBE NEWSWIRE) -- Atlantic International Corp. (OTC: ATLN) (the “Company” or “Atlantic” f/k/a SeqLL Inc. OTC: SEQL) today announced the acquisition (“Acquisition”) of Lyneer Staffing Solutions (“Lyneer”), a 28 year old national strategic staffing outsourced services and workforce solutions company servicing the commercial, professional, finance, direct placement, and managed service provider verticals. Lyneer has over 1,100 customers, including, among others, enterprise scale customers UPS, DHL, FedEx, XPO Logistics, Ryder, Ikea, PepsiCo, T-Mobile, Kraft Heinz, and Red Bull. The Company is using its best efforts to uplist in the near future onto a National Securities Exchange and remains optimistic that it will be able to do so.
On June 13th, 2024, SeqLL Inc. changed its corporate name to Atlantic International Corp. and on June 18th, 2024 a wholly-owned subsidiary of the Company was merged with and into Lyneer Investments, Inc., the parent of Lyneer Staffing Solutions. The consideration for the Acquisition consisted of a
Jeffrey Jagid, who was appointed as Chief Executive Officer of the Company in connection with the acquisition, commented, “With the acquisition, we are very excited to get to work building a leading staffing, outsourced services and workforce solutions enterprise for our over 1,100 customers. We believe that Lyneer is well positioned as a platform for our consolidation strategy and there are significant attractive merger and acquisition opportunities among leading medical, IT and engineering staffing, outsourced services and workforce solutions companies. The acquisition provides Atlantic with enhanced resources to pursue its growth and acquisition strategy.”
Prateek Gattani, the Chief Executive Officer of IDC, our principal shareholder, was appointed as Chairman of the Board, in connection with the Acquisition. Mr. Gattani commented, “We are beyond thrilled to begin the journey with Atlantic. As we move forward, we have significant confidence that Atlantic will capitalize on the compelling benefits of outsourced services and workforce solutions, adding capabilities across new high growth verticals through organic growth and merger and acquisitions.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Atlantic International Corp.
Atlantic International Corp. (“Atlantic”) is a leading strategic staffing, outsourced services and workforce solutions company executing a high growth strategy. Through its principal operating subsidiary Lyneer Investments LLC (“Lyneer”), Atlantic’s approximate 300 employees generated over
Safe Harbor Statement
With the exception of the historical information contained in this press release, the matters described herein, may contain “forward-looking statements” relating to the business of Atlantic, and its subsidiary company Lyneer. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts
Michael Tenore
General Counsel
mstenore@atlantic-international.com
508-740-2220
IR@atlantic-international.com
FAQ
What is the new name of SeqLL Inc.?
What is the significance of Atlantic International Corp.'s acquisition of Lyneer Staffing Solutions?
What are the financial details of Atlantic International Corp.'s acquisition of Lyneer?
Who are some of the major customers of Lyneer Staffing Solutions?
What are Atlantic International Corp.'s growth plans post-acquisition?
Is Atlantic International Corp. planning to uplist to a National Securities Exchange?
