November 29, 2022 – HireQuest Inc., a NASDAQ-traded national franchisor of on-demand, temporary and commercial staffing services, has entered into a definitive agreement to acquire certain assets of MRINetwork, a global executive recruiting network headquartered in Delray Beach, FL, for approximately $13.5 million before working capital adjustments. The assets include MRI’s 232 franchise offices in the U.S. and internationally, which generated approximately $283 million in systemwide sales and standalone adjusted EBITDA of $1.9 million for the trailing 12-month period ended September 30, 2022.
“MRI is recognized as one of the top permanent placement executive search and professional staffing networks in the U.S.,” said Rick Hermanns, president and CEO of HireQuest. “The addition of MRI as a franchise offering for executive search provides HireQuest with immediate scale in the segment and is highly complementary with our existing HireQuest direct and snelling offerings. For more than 50 years, MRI’s franchisees have provided their clients with exemplary service, we are looking forward to providing them with additional tools and support they need to grow that success in the future.”
“I’ve spent over 27 years as an MRI franchisee and became its CEO three years ago with a goal of carrying on the innovation established by our original founder, Alan Schonberg,” said Bert Miller, president and CEO of MRI. “Through this time, we’ve successfully guided the organization through a digital transformation to prepare the business for the future and help our franchisees build real businesses that also happen to be search firms.”
“I’m extremely proud of what we’ve built at MRI, and believe HireQuest will be a perfect partner to further develop our corporate and leadership teams and, most importantly, provide our franchisees with more resources, broader scope, and the ability to strategically scale,” said Mr. Miller. “We believe that becoming part of the HireQuest family is the right pathway to grow MRINetwork and give our franchisees every opportunity to further their success.”
HireQuest will fund this acquisition with cash on hand and its existing line of credit. Completion of this transaction is subject to a number of closing conditions. Subject to such conditions, the transaction is expected to close December 12, 2022. During the interim, both HireQuest and MRINetwork offices will remain open for business without interruption.
Richmond, VA-based Transact Capital Securities, LLC, served as financial advisor to MRINetwork.
HireQuest is a nationwide franchisor that provides on-demand labor and commercial staffing solutions in the light industrial, blue-collar and commercial segments of the recruiting industry for HireQuest Direct, HireQuest, Snelling and Link franchised offices across the U.S. Through its national network of over 210 franchisee-owned offices in more than 35 states and Washington, D.C., HireQuest provides employment for more than 60,000 individuals annually that work for thousands of customers in numerous industries.