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Corporate Resource Services, Inc. (OTCBB: CRRS), a national provider of temporary and permanent staffing services (the "Company"), announced that on November 21, 2011 it acquired, through a share exchange, TS Staffing Services. Inc (“TS Staffing”) from Robert Cassera, who is an affiliate of Tri-State Employment Services, Inc. TS Staffing., formerly known as TS Staffing Corp., provides temporary and permanent employment staffing services and related support services principally to clients in light industrial businesses. The purchase price for TS Staffing’s operating business was $30 million, which was paid through the issuance and commitment to issue an aggregate of 34,839,159 shares of the Company's common stock.
TS Staffing had sales of approximately $94 million for the six-month period ended June 30, 2011, and has approximately 20 offices throughout the United States.
Mr. Cassera, who was named Chairman of the Board of TS Staffing, stated that "This acquisition provides a great opportunity for CRS's continued growth as we expect it to increase our revenues by approximately 50% as well as improve our overall profitability. We are all excited about this acquisition, especially for its ability to introduce CRS to new markets while maintaining CRS’s quality service to its customers. We look forward to this acquisition."
The transaction was reviewed and approved by an independent Special Committee of the Company’s board of directors. The Special Committee received a fairness opinion from the BVA Group LLC, which indicated that the purchase price paid by the Company for TS Staffing, 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 all stockholders of the Company.
About Corporate Resource Services
Through its six wholly-owned subsidiaries, Accountabilities, Corporate Resource Development, Insurance Overload Services, Diamond Staffing Services, Inc., Integrated Consulting Group and TS Staffing Services, 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 150 staffing and recruiting offices.