Corporate Resource Services, Inc
. (OTC: CRRS), a national provider of temporary and permanent staffing services, announced today that it has acquired Tri-Overload Staffing Inc. from an affiliate of Tri-State Employment Services, Inc. Tri-Overload Staffing, now known as Insurance Overload Services, Inc., is in the business of providing temporary and permanent employment staffing services and related support services principally to the insurance industry. The purchase price was approximately $6.2 million which was paid through the issuance of approximately 8,590,000 shares of the Company's common stock.
Tri-Overload Staffing had sales of approximately $20 million for the nine-month period ending March 31, 2010. The company has over 20 offices throughout the United States.
“With this transaction, CRS continues to build scale as well as diversify its offerings. We now have a growing presence in the insurance industry, as well as in the light industrial and clerical industries,” said Jay Schecter, CEO of Corporate Resource Services. “With the completion of this acquisition and the addition of Insurance Overload Services to our group, we have added, based on current levels of business, over $100 million of annualized revenues to the company’s operations since April of this year, when we acquired certain assets of GT Systems. This is an important step for the Company and we plan to continue aggressively our growth through additional acquisitions as well as organically.”
Tri State Employment Services is the Company’s largest stockholder. Robert Cassera, the President and controlling stockholder of Tri-State, commented: “This transaction furthers our goal at Tri-State to focus our efforts on providing PEO services to our client base, while enabling CRS to increase its breadth and depth of offerings in the staffing business, where it has significant expertise and experience.”
The transaction was reviewed and approved by a special independent committee of the Board of Directors. The committee received a fairness opinion from The BVA Group LLC, which indicated that the purchase price paid by CRS for Tri-Overload, as well as the price per share of the Company's common stock used to determine the number of shares to be issued, was fair from a financial point of view to the unaffiliated stockholders of the Company.