Atlantic and Staffing 360 join forces in $25Mn merger deal
NEW JERSEY & NEW YORK — In a move that’s shaking up the staffing industry, Atlantic International Corp.(Atlantic) and Staffing 360 Solutions (Staffing 360) have inked a merger agreement worth about $25 million. This union is set to create a powerhouse in the workforce solutions arena.
A new staffing giant emerges
The deal will see Atlantic snapping up all of Staffing 360’s outstanding shares. Staffing 360 shareholders will get 1.202 Atlantic shares for each of their own. When the deal is finalized, Atlantic shareholders will hold 90% of the new company, with Staffing 360 shareholders keeping 10%.
Jeffrey Jagid, Atlantic’s top boss, will serve as the combined entity’s CEO, while Brendan Flood, Staffing 360’s chief, will take over the Staffing 360 division.
“Joining forces provides an expanded suite of services, broader geographic reach and enhanced professional opportunities for our combined organization,” said Jagid.
Flood meanwhile expressed enthusiasm about the merger: “We are excited to join forces with Atlantic International and its wholly-owned operating subsidiary, Lyneer Staffing Solutions, to become part of a distinguished, national leader in the sector.”
Financial impact of Atlantic-Staffing 360 merger
Atlantic, a big name in staffing and workforce solutions, has about 300 employees and raked in over $400 million in the year ending June 30, 2024. They’ve been on a roll, with Q2 2024 revenue hitting $104.6 million, up 17% from last year.
Staffing 360 brings its own strengths to the table, offering staffing services across various sectors, such as accounting, IT, and engineering. They recently sold off their UK operations to IPE Ventures.
Together, they’re eyeing annual revenue of around $620 million and aiming to save $10 million through synergies. The new entity will serve over 1,500 clients, with no single customer making up more than 5% of the total revenue.
What’s next for the staffing world?
This deal, set to wrap up in about three months, still needs the green light from shareholders and regulators. Once it’s done, Staffing 360 will keep its brand and leadership while operating under Atlantic’s wing.
This merger is a big deal in the staffing world. It combines Atlantic’s workforce know-how with Staffing 360’s diverse staffing services. The result is a beefed-up company ready to make waves in the human capital management sector.
