RemedyTemp to Be Bought by Select Personnel
Select Personnel Services agreed to acquire RemedyTemp Inc. for about $169 million in cash to offer more job placement services in California, the companies said Thursday.
Select, which specializes in placing loan processors and tellers at banks and finance companies, would pay $17 a share for RemedyTemp, 39% more than its closing price Wednesday.
Aliso Viejo-based RemedyTemp supplies clerical and warehouse workers. The combined company would have more than 20,000 clients and annual revenue of $1 billion.
Closely held Select, based in Santa Barbara, said the purchase would help it expand in California, the largest U.S. staffing market.
RemedyTemp, which gets more than one-third of its revenue in the state, places temporary accounting and technology professionals and fills executive administrative positions.
It also does more permanent placements, said analyst Tobey Sommer at SunTrust Robinson Humphrey in Nashville.
“RemedyTemp’s professional staffing businesses are growing and they’re higher margin,†Sommer said.
“RemedyTemp has a strong position in California and a greater exposure to stronger permanent placement hiring right now.â€
Shares of RemedyTemp rose $4.33, or 36%, to $16.53.
The transaction is expected to close before Oct. 1.
