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Major Force in Recruitment Created By US Deal

Major Force in Recruitment Created By US Deal

Elwood Staffing and SOS Employment Group has announced the joining together of their companies, creating an entity that rivals some of the staffing industry's largest players. With combined annual revenue of more than $750,000,000, the company will now rank in the top 10 of all U.S. commercial staffing companies, the top 20 of all U.S. staffing companies, and just outside the top 50 of all global staffing companies.

Elwood Staffing, headquartered in Columbus, Indiana, and SOS Employment Group, headquartered in Salt Lake City, Utah, closed a transaction allowing Elwood Staffing to purchase SOS Staffing Services, Inc., d/b/a SOS Employment Group. SOS will be a wholly-owned subsidiary of Elwood Staffing, but operate more like a sister company giving the combined entity a significantly expanded national footprint and service delivery capability unrivaled by most. The U.S. staffing industry is highly fragmented and is comprised of thousands of staffing agencies.

In terms of size, this transaction will put the combined company in the top 1% of all staffing companies in the world.

This combination brings together two of the nation's leading, privately-held employment services providers, blending talents and resources in the areas of traditional staffing, skilled trades staffing, professional/executive search and outplacement services.

This was considered a natural next step for the two businesses that share aggressive growth goals, values and a strong focus on relationships. Elwood Staffing CEO, Mark Elwood, will lead the combined entity. "This transaction combines the service capabilities, technologies, geographic reach and best practices of two successful companies. We are excited about what we know we can accomplish together," says Elwood. Further, Elwood notes, "Infusing newly created corporate muscle and sophistication into our well-established cultures of entrepreneurship and innovation will make for a unique and very competitive staffing company business model. Our customers, temporary associates and staff members will all benefit."

With the completion of the transaction, the combined company's internal staff will total nearly 1,000 employees and serve more than 6,000 clients. Additionally, the company will employ 27,000 temporary associates daily. The geographic presence will expand to 170 offices, plus an additional 50 vendor-on-premise locations, operating in 33 states and extending into Canada. With virtually no geographic overlap between the two firms, existing sales and service staff are expected to remain intact.

The combined company's vision is one of growth, making the executive teams at both SOS and Elwood necessary to execute critical business strategies. "Our strength is our people," comments Kevin Hardy, SVP of SOS Employment Group. "We believe we have found the perfect partner in Elwood."

"We're excited about the future and the benefits this union brings for employers, job seekers and communities nationwide," added Elwood. "We designed and launched a robust integration team two months ago comprised of some of the best talent across both companies-I'm confident our clients and job seekers will find it seamless."

Financial details of the transaction were not announced. CHILDS Advisory Partners served as SOS’s exclusive investment banker.


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