General Employment acquisition of Scribe Solutions closes
The transaction has been unanimously approved by the boards of directors of each company and a majority of their respective shareholders. Scribe Solutions, Inc. will now operate as a wholly owned subsidiary of General Employment Enterprises, Inc.
Derek Dewan, former Chairman and Chief Executive Officer (CEO) of Scribe Solutions, Inc. has been elected Chairman of the Board of Directors and CEO of General Employment effective April 1, 2015. Mr. Dewan was previously Chairman and CEO of MPS Group, Inc. In January 1994, Mr. Dewan joined AccuStaff Incorporated, MPS Group's predecessor, as President and Chief Executive Officer, and took that company public in August 1994. Under Mr. Dewan's leadership the company became a Fortune 1000 world-class, global multi-billion dollar staffing services provider through significant organic growth and strategic acquisitions. MPS Group grew to include a vast network of offices in the United States, Canada, the United Kingdom, Continental Europe, Asia and Australia. MPS Group experienced many years of continued success during Mr. Dewan's tenure and he led successful secondary stock offerings of$110 million and $370 million. The company was on the Wall Street Journal's "top performing stock list" for three consecutive years and included in the Standard and Poor's (S&P) Mid-Cap 400. In 2009, Mr. Dewan was instrumental in the sale of MPS Group to the largest staffing company in the world, Adecco Group, for $1.3 billion.
Commenting on the acquisition and on Dewan's joining the Company as Chairman and CEO, Andrew Norstrud said, "This acquisition is an exciting next step to our strategic growth plan and will expand our services into the higher margin and fast growing healthcare staffing market. I am looking forward to working with Derek his extensive experience in the staffing industry will be key in propelling our organic growth and leading a strategic acquisition strategy." Derek Dewan added his thoughts, saying, "I am thrilled to become a part of General Employment, a pioneer in the staffing industry. Having been in operation since 1893, the Company has a reputation for outstanding customer service and I look forward to continuing that legacy." Dewan continued, "Andrew and the hardworking employees have achieved much success in building a great staffing company which will serve as the foundation and platform for us to execute its growth strategy. The Company is well positioned to increase its breadth and depth of service offerings, accelerate internal growth, and acquire the best operating companies in the staffing industry. I look forward to leading General Employment in achieving its strategic goals and increasing shareholder value."
In addition to Dewan joining the General Employment management team and board from Scribe, Alex Stuckey joins the Company as President and Chief Operating Officer (COO) effective April 1, 2015. Stuckey was the President and COO of Scribe Solutions, Inc. In his role at Scribe he had responsibility for all aspects of the healthcare staffing and solutions operations including strategic planning, finances, operations, management of sales activities, customer service and field support in all markets. Under his leadership, Scribe Solutions significantly grew its revenue and profitability and strengthened its balance sheet. Prior to joining Scribe, Mr. Stuckey was the founder and CEO of Fire Fighters Equipment Co. He led that company from a start up to a multi-million dollar enterprise with substantial net profits through both organic and acquisition growth. At Fire Fighters, Mr. Stuckey developed unique marketing strategies, which were revolutionary to the industry. His efforts led to a successful stock sale of Fire Fighters to Cintas. Stuckey also has extensive experience in banking and finance, which he obtained after a successful career at Barnett Bank as a special assets officer. Additionally, Mary Claire Menze, current Executive Vice President at Scribe and its founder will assume her previous role as President of Scribe. She will work with the General Employment management team to grow the Company's staffing and solutions business in the healthcare space.
Andrew Norstrud, current Chief Executive Officer of the Company, will continue as Chief Financial Officer (CFO) of General Employment and Michael Schroering has resigned from the General Employment Board of Directors effective April 1, 2015.