Corporate Resource Services, Inc. announced yesterday that they completed their previously announced acquisition of Tri-Diamond Staffing Inc. from an affiliate of Tri-State Employment Services, Inc.
Tri-Diamond Staffing is in the business of providing temporary and permanent employment staffing services and related support services. This is principally to clients in light industrial businesses. Following the consummation of the acquisition, Tri-Diamond Staffing will be known as Diamond Staffing Services, Inc. The purchase price is approximately $25 million, which was paid through the issuance of 29,411,765 shares of Corporate Resource Services, Inc.’s common stock.
Jay H. Schecter, Chief Executive Officer of Corporate Resource Services, Inc., said, “We are pleased by the addition of Diamond Staffing Services. This acquisition will only serve to strengthen the business of Corporate Resource Services.”
The transaction underwent review and received approval by a special independent committee of the Board of Directors. The special committee received a fairness opinion from The BVA Group LLC. The opinion indicated that the purchase price paid by the Company for Tri-Diamond, as well as the price per share of the Company’s common stock used to determine the number of shares to be issued, was fair from a financial point of view to the unaffiliated stockholders of the Company.
Tri-Diamond Staffing had sales of approximately $77 million for the nine-month period ended September 30, 2010. They had approximately $1.8 million in pre-tax income for the same period. They have 23 offices throughout the United States.
Headquartered in New York, New York, Corporate Resource Services, Inc. is a national provider of diversified staffing, recruiting, and consulting services, including temporary staffing services. Their focus is on light industrial services, the insurance industry, and clerical and administrative support. The Company provides these services through their wholly owned subsidiaries: Accountabilities, Corporate Resource Development, Insurance Overload Services, and Integrated Consulting Group.