March 01, 2022
Staffing provider BGSF Inc. (NYSE: BGSF) today announced that it has signed a definitive agreement to sell InStaff – which includes substantially all of its light manufacturing assets – to Jobandtalent, a recruitment platform online based in Madrid, Spain, through its wholly owned subsidiary. Sentech Engineering Services Inc.
Plano, Texas-based BGSF acquired InStaff in 2013.
The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.
BGSF was launched as a workforce solutions provider in 2007 with all revenue coming from the light industrial sector. As BGSF diversified into the professional and real estate segments, InStaff continued to develop long-term customer relationships through on-site engagements in logistics and warehousing, achieving a customer retention rate of 96% over the course of fiscal year 2021, according to the company.
“The sale of InStaff is an important step in our strategic focus on creating long-term value and will allow us to focus our strengths where we are strongest,” said Beth Garvey, President and CEO of BGSF. “This strategic divestment also allows us to deploy more capital in managed services and high-end consulting solutions, as well as drive geographic expansion in real estate. In addition, the net proceeds from the sale provide us with additional flexibility to pursue our ongoing acquisition strategy in addition to reducing debt.
Founded in 2009, Jobandtalent secured a $118.9 million funding round last year for expansion, including in the United States. The company achieved $1 billion in revenue in 2021 and currently operates in nine countries in Europe and the Americas.
“The integration of InStaff demonstrates our continued commitment to growing our business in the United States,” said Felipe Navío, co-CEO and co-founder of Jobandtalent. “This transaction will strengthen our global competitive position and allow us to seize new business opportunities at a rapid pace.”