Disposal of Corestaff

RNS Number : 3601Z

Impellam Group plc

24 January 2022

 

24 January 2022

Impellam Group plc

("Impellam" or the "Company")

Disposal of Corestaff

Impellam Group plc (AIM: IPEL) announces that it has entered into an agreement to sell the business and assets of Corestaff, its US-based Light Industrial brand, to Swipejobs Inc., a US private digital staffing company, for cash consideration of approximately £14 million ($19 million) (the "Disposal").

In the year ended 1 January 2021, Corestaff, reported in the Group's Regional Specialist Staffing portfolio, generated revenue of £72 million and gross profit of £10 million and an operating loss of £0.1m . Net assets at 30 June 2021 were £7.6 million.

Impellam expects the transaction will complete in early February 2022. Following completion of the Disposal, the Company will use the proceeds of sale to pay down net debt to fund additional investment to further accelerate the Group's strategy.

Julia Robertson, Chief Executive Officer, commented:

"We recognise the contribution that Corestaff has made to our Group but after a strategic review, and in consideration of the scale and limited geographic footprint of Corestaff in North America, we consider our customers and people will benefit from enhanced geographic reach for their light industrial staffing requirements coupled with an accelerated digital transformation brought about by this transaction.

The investment case for Impellam is further enhanced by this transaction enabling us to focus our portfolio and accelerate our investments in Virtuosity, technology and digital and innovation.  These investments have been crucial in developing new ways of working and collaboration during the pandemic which means that there should never be a reason for a customer to leave Impellam.   We enter 2022 well placed and with positive momentum to take advantage of many exciting and profitable growth opportunities across our focused portfolio. "

Enquiries:

Impellam Group plc Julia Robertson, Chief Executive Officer	01582 692 658
Canaccord Genuity Ltd (Nomad and Sole Broker) Bobbie Hilliam Georgina McCooke	020 7523 8150

Note to Editors:

Impellam is a leading Global Talent Acquisition and Managed Workforce Solutions provider supported by talent-focused Specialist Staffing brands with deep heritages, vertical sector expertise and loyal candidate networks.

Clients across the world trust us to deliver Managed Services and talent-focused Specialist Staffing in the UK, North America, Australasia, the Middle East and Europe. Working with them are 2,700 Impellam people, bringing a wealth of expertise through our 14 market-leading brands across 76 locations. Every year, we connect carefully chosen candidates with good work at all levels. They include technology and digital specialists, scientists, clinical experts, engineers, nurses, doctors, lawyers, teachers, receptionists, drivers, chefs, administrators, warehouse and call centre operatives.

Underpinning everything we do is our Virtuoso strategy which recognises it is our people who make the difference. Virtuosos make and deliver on promises and grow with their customers through sector, service or international expansion which ensures there is never a need for a customer or candidate to leave Impellam. Impellam is the seventh largest Global Talent Acquisition and Managed Workforce Solutions provider in the world.

For more information about Impellam Group please visit:    www.impellam.com

swipejobs is the market leading digital platform for staffing in North America. It operates in all 50 states, has more than 900,000 registered temporary employees, and in excess of 125,000 customer users.  

For more information about swipejobs please visit:    www.swipejobs.com  

 

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