Corporate Resource Services, Inc. completes acquisition of Impact Staffing assets
Corporate Resource Services, Inc. has announced that it completed its acquisition of the assets of Impact Staffing through a foreclosure sale pursuant to Article 9 of the Uniform Commercial Code. The purchase price for the assets of ICGNY included the repayment of outstanding obligations of ICGNY under its credit facility, the assumption of certain other liabilities, and the payment of a fixed percentage of gross sales over a five year period. The effective date for the acquisition was December 14, 2010.
CRS acquired the assets of ICGNY through a newly formed, wholly owned subsidiary. In connection with the acquisition, the acquiring subsidiary entered into a new $4.2 million secured revolving credit facility and a $120,000 secured term loan facility. The proceeds from these credit facilities were used to pay amounts due at the closing and will be used to finance the subsidiarys working capital and may be used for the payment of certain other deferred closing obligations.
Based on the unaudited results for first nine months of 2010, ICGNY anticipates that its sales for 2010 will be in excess of $25 million. ICGNY has offices in New York, New Jersey, Pennsylvania and Illinois. The acquiring subsidiary will conduct business under the name Impact Staffing.
ICGNY specializes in temporary staffing in light industrial businesses predominantly in the Northeastern United States. We are very pleased to have the opportunity to expand our light industrial offerings through the acquisition of these assets and we look forward to continuing to grow in this area and adding value for our stockholders, stated John P. Messina, Sr., President of CRS.