Atlantic International Corp. Forms New Alliance with Staffing 360 Solutions
Atlantic International Corp. (OTC: ATLN) and Staffing 360 Solutions, Inc. (Nasdaq: STAF) announced a significant merger, aiming to create a powerhouse in human capital management and outsourced services. Their boards have approved a definitive merger agreement, under which Atlantic will acquire all outstanding shares of Staffing 360’s common stock.
Overview of the Merger Details
Under the terms of this merger, Staffing 360 shareholders will receive 1.202 shares of Atlantic common stock for each Staffing 360 share. Post-merger, shareholders of the two companies are expected to hold approximately 90% and 10% of the newly formed entity, respectively, enhancing shareholder value significantly.
Expected Timelines and Leadership Structure
The merger is anticipated to finalize within the next three months, pending approval from Staffing 360 shareholders and relevant regulatory bodies. Staffing 360 will maintain its identity and leadership structure as a wholly-owned subsidiary of Atlantic International, continuing to serve its clientele under its established brand.
Leadership Perspectives on the Merging of Forces
Jeffrey Jagid, CEO of Atlantic International, expressed his excitement about the merger, stating, "We have a deep respect for the skilled team at Staffing 360 and the advantages this merger brings to both of our clients. The merger will allow us to broaden our market presence, increasing our expected annual revenues to approximately $620 million. Our ambition is to create a multibillion-dollar services company through organic growth and strategic acquisitions, which this merger aligns perfectly with."
Strategic Benefits for Shareholders
The merger promises several key advantages for shareholders, including:
- Enhanced Scale and Market Potential: The combined revenue of about $620 million positions the new entity favorably for increased valuation and capital opportunities, as larger firms in the staffing sector tend to secure premium valuations.
- Improved Financial Efficiency: By merging, Atlantic and Staffing 360 expect to achieve cost efficiencies, potentially lowering operational costs and increasing profitability in the subsequent year.
- Diverse Customer Portfolio: The new company will support more than 1,500 clients, which significantly reduces reliance on any single source for revenue, enhancing its resilience against market fluctuations.
Anticipated Market Impact
The merger marks a vital move in the staffing industry. Integrating Atlantic’s established service footprint with Staffing 360’s offerings is set to provide a broader range of solutions, increased reach, and greater opportunities for both companies. This combination is well-timed, considering the industry's trend towards flexible workforces and outsourcing services, which has been gaining traction in various sectors.
Commitment to a Bright Future
Brendan Flood, CEO of Staffing 360, also shared his enthusiasm, stating, "Being part of Atlantic International alongside Lyneer Staffing Solutions will bolster our capabilities and better position us in the marketplace. We share common values and a strong foundation, which will enable us to deliver better services to a growing base of companies that recognize the strategic advantage of outsourcing. This merger highlights the strengths of both brands and the talent within our teams."
About the Companies
Atlantic International Corp. is a dynamic staffing and workforce solutions provider, aiming for significant growth through various strategies. The company employs around 300 staff members and has reportedly surpassed $400 million in revenue, establishing itself among the largest staffing agencies within multiple sectors.
Staffing 360 Solutions, Inc. specializes in a comprehensive array of staffing services across several sectors, such as accounting, IT, finance, and engineering. With this merger, both companies will work to enhance their market offerings and expand their operational capabilities.
Frequently Asked Questions
Why did Atlantic International Corp. merge with Staffing 360 Solutions?
The merger aims to create a more powerful entity in the staffing sector, enhancing service offerings and market reach for both companies.
What are the expected financial benefits from this merger?
It is expected that the combined company will achieve an annual revenue run rate of around $620 million, benefiting from scale and liquidity.
How will the leadership structure change post-merger?
Staffing 360 will continue under its current leadership as a wholly-owned subsidiary of Atlantic International.
What are the anticipated challenges of this merger?
Challenges could include integrating operations, managing client expectations, and achieving anticipated synergies.
When is the merger expected to close?
The transaction is anticipated to finalize within the next three months, pending necessary approvals.
