Corporate Resource Services, Inc. (OTCBB:CRRS) (“CRS”) today announced that it completed its acquisition of the assets of Integrated Consulting Group of New York, LLC, which also conducts business as Impact Staffing (“ICGNY”), through a foreclosure sale pursuant to Article 9 of the Uniform Commercial Code. The purchase price for the assets of ICGNY included the repayment of outstanding obligations of ICGNY under its credit facility, the assumption of certain other liabilities, and the payment of a fixed percentage of gross sales over a five year period. The effective date for the acquisition was December 14, 2010.
CRS acquired the assets of ICGNY through a newly formed, wholly owned subsidiary. In connection with the acquisition, the acquiring subsidiary entered into a new $4.2 million secured revolving credit facility and a $120,000 secured term loan facility. The proceeds from these credit facilities were used to pay amounts due at the closing and will be used to finance the subsidiary’s working capital and may be used for the payment of certain other deferred closing obligations.
Based on the unaudited results for first nine months of 2010, ICGNY anticipates that its sales for 2010 will be in excess of $25 million. ICGNY has offices in New York, New Jersey, Pennsylvania and Illinois. The acquiring subsidiary will conduct business under the name Impact Staffing.
ICGNY specializes in temporary staffing in light industrial businesses predominantly in the Northeastern United States. “We are very pleased to have the opportunity to expand our light industrial offerings through the acquisition of these assets and we look forward to continuing to grow in this area and adding value for our stockholders,” stated John P. Messina, Sr., President of CRS.About Corporate Resource Services, Inc. Through its four wholly-owned subsidiaries, Accountabilities, Corporate Resource Development, Insurance Overload Services and Integrated Consulting Group, Inc., Corporate Resource Services is a national provider of diversified staffing, recruiting and consulting services, including temporary staffing services, with a focus on light industrial services, the insurance industry and clerical and administrative support. The Company provides its services across a variety of industries and to a diverse range of clients ranging from sole proprietorships to Fortune 1000 companies. The Company conducts all of its business in the United States through the operation of over approximately 50 staffing and recruiting offices.