FORT LAUDERDALE, Fla., Oct. 1 /PRNewswire-FirstCall/ -- Spherion Corporation today announced that the company has closed the previously announced transaction to acquire Todays Staffing from CDI Corp. for cash of $40 million which was funded from Spherion's existing cash resources. Working capital received at closing was approximately $13 million. The cash purchase price represents approximately 4X proforma EBITDA for the twelve months ended June 30, 2007, adjusted for estimated back office synergies of $5 million. The transaction is expected to be accretive to net earnings in 2008.
Roy Krause, Spherion's president and chief executive officer commented, "We are very pleased to have added Todays Staffing, with its outstanding reputation, to our portfolio of service offerings. Our integration plan is well under way and should be substantially completed by the end of 2007. We will use the Todays Staffing brand and platform to accelerate our small to midsized customer growth strategy especially in the retail clerical market segment."
ABOUT SPHERION
Spherion Corporation is a leading recruiting and staffing company that provides integrated solutions to meet the evolving needs of companies and job candidates. As an industry pioneer for more than 60 years, Spherion has screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs. Positions range from administrative and light industrial to a host of professions that include accounting/finance, information technology, engineering, manufacturing, legal, human resources and sales/marketing.
With approximately 650 locations in the United States and Canada, Spherion delivers innovative workforce solutions that improve business performance. Spherion provides its services to more than 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing nearly 300,000 people annually through its network, Spherion is one of North America's largest employers. To learn more, visit http://www.spherion.com/.
ABOUT TODAYS STAFFING
Dallas, Texas-based Todays Staffing, Inc. was founded in 1982 and has more than 60 locations throughout the United States and Canada. Todays provides temporary, temporary to permanent and permanent clerical, administrative, legal and financial staffing to a wide range of clients.
Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our acquisition of Todays Staffing. Forward-looking statements do not relate strictly to historical or current matters. Rather, forward-looking statements are predictive in nature and may depend upon or refer to future events, activities or conditions. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include: our ability to recognize the benefits of the Todays Staffing acquisition, including our expectation that the transaction will be accretive in 2008; the amount of the costs, fees, expenses and charges related to the Todays Staffing acquisition; and our ability to integrate successfully the Todays Staffing business. Additional information concerning these and other important factors can be found within our filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Although we believe that these statements are based upon reasonable assumptions, we cannot provide any assurances regarding future results. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
