HireQuest acquires TEC Staffing Services
by December 12, 2023 2:23 pm 717 views
Arkansas’ largest staffing agency, Fort Smith-based TEC Staffing Services, has been acquired by HireQuest Staffing Solutions, Inc. of South Carolina. Terms of the transaction were not disclosed.
Fort Smith-based TEC Staffing Services’ 10 locations have provided staffing services to Northwest Arkansas, Central Arkansas, the Fort Smith metro and Eastern Oklahoma for more than 40 years. TEC generated over $34 million in total revenue for the trailing 12-month period ended Sept. 30, 2023.
HireQuest also closed the sale of all TEC’s offices in Northwest and Central Arkansas to franchisees and completed their conversion to HireQuest’s Snelling franchise model.
HireQuest, a publicly traded company (NASDAQ: HQI), has been operating in the staffing space for more than 30 years, and now has over 230 locations in 37 states and Washington, D.C. HireQuest provides employment for approximately 81,000 individuals annually that work in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, medical, travel, financial services, and event services.
HireQuest said this acquisition marks a significant addition to its presence in Arkansas and the Southeast.
“TEC has been a premier provider of staffing services to the employers and workers in Northwest and Central Arkansas for over 40 years. We have some great teams of our existing franchisees partnering with members of TEC’s leadership and we’re excited for the opportunity they have to continue serving the region as part of the Snelling franchise family,” Rick Hermanns, president and CEO of HireQuest, said in a statement.
HireQuest generated $28.118 million in revenue in the first nine months of 2023, better than the $22.894 million in the same period of 2022, according to the company’s third-quarter financial report posted Nov. 8. Net income in the first nine months was $6.12 million, down from $9.741 million in the same period of 2022.
The thinly-traded shares of HireQuest closed Tuesday at $14.62, down 69 cents. During the past 52 weeks the share price has ranged between $29.38 and $12.49.
CBI Advisory Partners represented TEC in the transaction, according to Jon Holbert, President of CBI Advisory Partners.
CBI is the region’s largest business brokerage and Lower Mid-Market Mergers and Acquisition firm serving Arkansas, Oklahoma and Tennessee from four office locations, Northwest Arkansas (Springdale), Central Arkansas (Little Rock) Tulsa, Oklahoma and Memphis, Tenn.