Kelly Services, Inc., a firm specializing in talent solutions, made a public announcement on Friday that it has entered into an agreement to purchase Motion Recruitment Partners, LLC (MRP). The deal, worth $425 million in cash, is with the private investment firm, Littlejohn & Co., LLC. The agreement also includes an additional earn-out of up to $60 million, subject to meeting specific performance criteria.
Kelly Services plans to fund this transaction through a combination of debt and available capital. The latter includes the quick redeployment of more than $100 million procured from the sale of Kelly's staffing operations in Europe in January.
On successful completion of the transaction, which is predicted to close in the second quarter, MRP is expected to continue offering services through its present operational companies and brands to enhance Kelly's capabilities and market share.
The company noted that the acquisition of MRP is poised to bolster the revenue growth potential of the company and speed up the expansion of EBITDA margin.
