Atlantic International Corp. (OTC: ATLN) and Staffing 360 Solutions (NASDAQ: STAF) have announced a definitive merger agreement. Atlantic will acquire all outstanding shares of Staffing 360, with shareholders receiving 1.202 Atlantic shares for each Staffing 360 share. The transaction, valued at approximately $25 million, will result in Atlantic and Staffing 360 shareholders owning 90% and 10% of the combined company respectively.
The merged entity expects annual revenue of approximately $620 million and anticipates run-rate cost synergies of $10 million. Staffing 360 will operate as a wholly owned subsidiary under its current leadership team. The transaction is expected to close within 90 days, subject to shareholder and regulatory approval.
Atlantic International Corp. (OTC: ATLN) e Staffing 360 Solutions (NASDAQ: STAF) hanno annunciato un accordo di fusione definitivo. Atlantic acquisirà tutte le azioni in circolazione di Staffing 360, con gli azionisti che riceveranno 1,202 azioni di Atlantic per ogni azione di Staffing 360. L’operazione, del valore di circa 25 milioni di dollari, comporterà che gli azionisti di Atlantic e Staffing 360 possiedano rispettivamente il 90% e il 10% della società risultante dalla fusione.
L’entità fusa prevede entrate annue di circa 620 milioni di dollari e anticipa sinergie di costo annuali pari a 10 milioni di dollari. Staffing 360 opererà come una filiale interamente controllata sotto l’attuale team di leadership. Si prevede che l’operazione si chiuderà entro 90 giorni, soggetta all’approvazione degli azionisti e alle normative.
Atlantic International Corp. (OTC: ATLN) y Staffing 360 Solutions (NASDAQ: STAF) han anunciado un acuerdo definitivo de fusión. Atlantic adquirirá todas las acciones en circulación de Staffing 360, y los accionistas recibirán 1.202 acciones de Atlantic por cada acción de Staffing 360. La transacción, valorada en aproximadamente 25 millones de dólares, resultará en que los accionistas de Atlantic y Staffing 360 posean el 90% y el 10% de la empresa combinada, respectivamente.
La entidad fusionada espera ingresos anuales de aproximadamente 620 millones de dólares y anticipa sinergias de costos por un total de 10 millones de dólares. Staffing 360 operará como una subsidiaria de propiedad total bajo su equipo de liderazgo actual. Se espera que la transacción se cierre dentro de 90 días, sujeta a la aprobación de los accionistas y regulatoria.
애틀랜틱 인터내셔널 코퍼레이션 (OTC: ATLN)과 스태핑 360 솔루션즈 (NASDAQ: STAF)가 최종 합병 계약을 발표했습니다. 애틀랜틱은 스태핑 360의 모든 유통 주식을 인수하며, 주주들은 스태핑 360의 주식 1주당 1.202주 애틀랜틱 주식을 받게 됩니다. 이번 거래는 약 2천5백만 달러로 평가되며, 애틀랜틱과 스태핑 360의 주주들이 각각 합병된 회사의 90% 및 10%를 소유하게 됩니다.
합병된 기업은 연간 약 6억2천만 달러의 수익을 예상하며, 1천만 달러의 비용 시너지를 예상하고 있습니다. 스태핑 360은 현재의 경영진 아래에서 완전 자회사로 운영될 것입니다. 이번 거래는 주주 및 규제 승인을 조건으로 90일 이내에 마무리될 것으로 예상됩니다.
Atlantic International Corp. (OTC: ATLN) et Staffing 360 Solutions (NASDAQ: STAF) ont annoncé un accord de fusion définitif. Atlantic va acquérir toutes les actions en circulation de Staffing 360, avec des actionnaires recevant 1,202 actions Atlantic pour chaque action Staffing 360. La transaction, évaluée à environ 25 millions de dollars, aboutira à ce que les actionnaires d’Atlantic et de Staffing 360 détiennent respectivement 90% et 10% de la société combinée.
L’entité fusionnée prévoit un chiffre d’affaires annuel d’environ 620 millions de dollars et anticipe des synergies de coûts de 10 millions de dollars. Staffing 360 opérera en tant que filiale à part entière sous son équipe de direction actuelle. La transaction devrait se conclure dans les 90 jours, sous réserve de l’approbation des actionnaires et des régulateurs.
Atlantic International Corp. (OTC: ATLN) und Staffing 360 Solutions (NASDAQ: STAF) haben eine endgültige Fusionsvereinbarung bekannt gegeben. Atlantic wird alle ausstehenden Aktien von Staffing 360 erwerben, wobei die Aktionäre 1,202 Atlantic-Aktien für jede Staffing 360-Aktie erhalten. Die Transaktion, die auf etwa 25 Millionen Dollar geschätzt wird, wird dazu führen, dass die Aktionäre von Atlantic und Staffing 360 90% bzw. 10% des fusionierten Unternehmens besitzen.
Das fusionierte Unternehmen erwartet einen Jahresumsatz von etwa 620 Millionen Dollar und antizipiert jährliche Kostensynergien von 10 Millionen Dollar. Staffing 360 wird als vollständig im Besitz befindliche Tochtergesellschaft unter dem aktuellen Führungsteam operieren. Es wird erwartet, dass die Transaktion innerhalb von 90 Tagen abgeschlossen wird, vorbehaltlich der Genehmigung durch die Aktionäre und der Regulierungsbehörden.
Positive
- Combined annual revenue expected to reach $620 million
- Expected cost synergies of $10 million
- Enhanced market presence with over 1,500 customers
- No single customer represents more than 5% of total revenue
- 50% increase in business scale for Atlantic
Negative
- Significant dilution for Staffing 360 shareholders (receiving only 10% ownership)
- Transaction subject to regulatory and shareholder approval risks
Insights
This merger represents a significant strategic move in the staffing industry. The
Key financial benefits include improved cost structure through operational synergies, enhanced market presence and better risk distribution with no single customer exceeding
This consolidation strengthens competitive positioning in the fragmented staffing industry. The expanded geographic footprint and diversified service offerings create significant cross-selling opportunities across their combined 1,500+ customer base. The retention of key leadership from both companies should facilitate smooth integration and relationship maintenance.
The timing aligns with increasing market demand for flexible workforce solutions and outsourced services. The combined entity will be better positioned to capitalize on these trends and compete for larger contracts. The improved liquidity and scale could also attract institutional investors, potentially leading to better market visibility and trading volumes.
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Combined annual revenue expected to be approximately
$620 million -
Highly synergistic transaction expected to result in run-rate cost synergies/savings of approximately
$10 million - Atlantic CEO Jeffrey Jagid to remain Chief Executive Officer of combined company; Staffing 360 Solutions CEO Brendan Flood to serve as President of Staffing 360 Solutions
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Atlantic will acquire all outstanding shares of Staffing 360 Solutions in a transaction valued at approximately
$25 million
Atlantic International Corp. (“Atlantic”) (OTC: ATLN), and Staffing 360 Solutions, Inc. (“Staffing 360”) (Nasdaq: STAF), both leading providers of strategic outsourced services and workforce solutions, today announced that their boards of directors unanimously approved a definitive agreement under which Atlantic will acquire all outstanding shares of Staffing 360’s common stock. The Staffing 360 shareholders will receive 1.202 Atlantic shares for each Staffing 360 share. Atlantic and Staffing 360 shareholders will own approximately
The transaction is expected to close within the next 90 days and is subject to the approval of Staffing 360’s shareholders and other customary closing conditions, including regulatory approval. Those matters, including the record date and meeting date, will be communicated subsequent to the receipt of SEC approval of related proxy materials. When complete, Staffing 360 will continue to operate under its current leadership team and brand as a wholly owned subsidiary of Atlantic. The record date and the date for the special meeting of shareholders to vote on the transaction will be communicated to shareholders in the coming days.
“We have great respect for Staffing 360 and its talented team, and are enthusiastic about the mutual benefits this transaction brings to the clients of both entities,” said Atlantic’s CEO Jeffrey Jagid. “The merger provides a unique opportunity to increase our business by approximately 50 percent to an annualized revenue run rate of approximately
“Joining forces provides an expanded suite of services, broader geographic reach and enhanced professional opportunities for our combined organization. Together, we are even stronger, and I look forward to a bright future ahead,” Jagid added.
Brendan Flood, Staffing 360’s CEO, said, “We are excited to join forces with Atlantic International and its wholly owned operating subsidiary, Lyneer Staffing Solutions, to become part of a distinguished, national leader in the sector. Building on complementary footprints and shared values, our combined company will be even better positioned to deliver enhanced levels of service to a growing number of companies throughout
Anticipated Benefits to Shareholders from the Merger
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Enhanced scale and liquidity with potential for premium valuation: With a pro-forma revenue base of approximately
$620 million - Improved cost structure: The combination of Atlantic and Staffing 360 is expected to create cost efficiencies and decrease Atlantic’s operating expense ratio, leading to improved profitability. Atlantic has identified opportunities to further enhance operating cost efficiencies in the year following the close of the transaction.
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Benefit from a more diversified customer base: Atlantic’s broad customer base has grown organically and through M&A and is positioned to withstand periods of market volatility. Together with Staffing 360, the combined company will serve more than 1,500 customers, with no customer generating more than
5% of total revenue.
Cautionary Notes on Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. These and other forward-looking statements, including, but not limited to, the failure to consummate the proposed transaction or to make or take any filing or other action required to consummate such transaction on a timely matter or at all, are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to, (i) the completion of the proposed transaction on anticipated terms and timing, including obtaining shareholder and regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the new combined company’s operations and other conditions to the completion of the merger, (ii) the ability of Atlantic and Staffing 360 to integrate the business successfully and to achieve anticipated synergies, risks and costs and (iii) potential litigation relating to the proposed transaction that could be instituted against Atlantic, Staffing 360 or their respective directors, (iv) the risk that disruptions from the proposed transaction will harm Atlantic’s or Staffing 360’s business, including current and proposed plans and operations, (v) the ability of Atlantic or Staffing 360 to retain and hire key personnel, (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger, (vii) uncertainty as to the long-term value of Atlantic common stock, (viii) continued availability of capital and financing and rating agency actions, (ix) legislative, regulatory and economic developments and (x) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as management’s response to any of the aforementioned factors. These risks, as well as other risks associated with the proposed merger, will be more fully discussed in the joint proxy statement/prospectus that will be included in the registration statement on Form S-4 that will be filed with the SEC in connection with the proposed merger. While the list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Atlantic’s or Staffing 360’s consolidated financial condition, results of operations, credit rating or liquidity. Neither Atlantic nor Staffing 360 assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
About Atlantic International Corp.
Atlantic International Corp. (“Atlantic”) is a leading strategic staffing, outsourced services, and workforce solutions company executing a high-growth strategy. Through its principal operating subsidiary, Lyneer Investments LLC (“Lyneer”), Atlantic’s approximately 300 employees generated over
About Staffing 360 Solutions, Inc.
Staffing 360 Solutions, Inc. provides a complete suite of professional and commercial staffing and employer-of- record HR services to the accounting, finance, IT, engineering and administration sectors on a temporary, contract or permanent basis. For more information, visit www.staffing360solutions.com.
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Staffing 360
Roger Pondel or Natalie Mu
PondelWilkinson Inc.
(310) 279-5980
rpondel@pondel.com
nmu@pondel.com
Atlantic International
Kale Fein
(213) 915-6414
kfein@atlantic-international.com
Source: Staffing 360 Solutions, Inc. and Atlantic International Corp.
FAQ
What is the value of the merger between Atlantic International and Staffing 360 Solutions (STAF)?
The merger transaction is valued at approximately $25 million.
What is the share exchange ratio for Staffing 360 Solutions (STAF) shareholders in the merger?
Staffing 360 shareholders will receive 1.202 Atlantic shares for each Staffing 360 share they own.
What percentage will Staffing 360 (STAF) shareholders own of the combined company?
Staffing 360 shareholders will own approximately 10% of the combined company on a fully diluted basis.
What are the expected cost synergies from the Atlantic-Staffing 360 (STAF) merger?
The merger is expected to result in run-rate cost synergies and savings of approximately $10 million.