February 1, 2022 – HireQuest Inc., a NASDAQ-traded national franchisor of on-demand, temporary and commercial staffing services, has entered into a definitive agreement to acquire Northbound Executive Search in New York City. Founded in 2010, Northbound provides executive placement and short-term consultant services primarily to blue chip clients in the financial services industry. The firm generated over $15 million of revenue in 2021. “The acquisition of Northbound continues to build out HireQuest’s offerings in the higher margin executive placement and short-term consultant segments,” said Rick Hermanns, president and chief executive officer of HireQuest. “The company is a natural fit for our growing family of brands and we are excited that Northbound’s founders, Rachel and Greg Feder, will be staying on to lead Northbound into its next chapter.”
“With this partnership, Northbound will have the ability to draw from an organization that will help to fuel our next stage of growth,” said Mr. Feder, managing partner “As managing partners of Northbound, we will continue to operate the business on a day-to-day basis and our teams will continue to focus on providing a premium level of service to our clients,” said Ms. Feder.
At the close of the transaction, Northbound will be converted to HireQuest’s franchise model. HireQuest will fund consideration at close for the acquisition with existing cash on hand, a modest draw on its line of credit and $500,000 in HireQuest stock. A portion of the purchase price will be paid as a seller’s note over three years. Completion of the transaction is subject to closing conditions. Subject to such conditions, the transaction is expected to close in the first quarter of 2022. Richmond, VA-based Transact Capital Securities served as financial advisor to Northbound.
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 including construction, light industrial, manufacturing, hospitality, clerical, medical, dental, travel and event services.
Acquisitions and consolidations continue to make news in the recruiting industry, with a number of notable purchases in recent months. Here is a sampling from the Hunt Scanlon Media archives:
Haddonfield, NJ-based True, a global executive talent management platform, has acquired climate technology and sustainability executive search firm Hobbs & Towne, Inc. (HTI). Led by Andrew Towne and Robert Hobbs, HTI will continue to serve its mission-driven clients and provide a greater range of capabilities under True. True, one of the fastest growing search firms of the past decade, reported global revenues of $116.5 million last year. The firm placed No. 7 in the Hunt Scanlon Top 25 rankings. Hobbs & Towne ranked No. 24 and was crowned the fastest growing search firm of the year, reporting a 59 percent growth rate.
ZRG Partners, a leading search firm backed by private equity firm RFE Investment Partners, has acquired boutique strategy consulting firm Brimstone Consulting Group LLC. Financial terms of the deal were not disclosed. “The complementary nature of our businesses made Brimstone an obvious partner for ZRG, as we continue to expand our portfolio of talent advisory solutions,” said Larry Hartmann, CEO of ZRG. “Further ensuring a new CEO is successful with the proven process of Brimstone will create a new paradigm for CEO transitions.”
Korn Ferry has entered into a definitive agreement to acquire Lucas Group. “This combination is the right move at the right time,” said Korn Ferry CEO Gary D. Burnison. “Today’s workscape is being transformed before our eyes – people working anywhere, everywhere and at any time. Professionals are on the move. Boomers are retiring, and career nomads are looking for change – early and often. We are seizing this opportunity to help clients find the right talent who are highly agile with specialized skills and expertise to help them drive superior performance.”
Orlando, FL-headquartered healthcare-focused search firm Kirby Bates Associates (KBA) and Tyler & Company have merged business operations. The unified organization will operate under the Kirby Bates Associates brand. “Tyler & Company offers an exciting opportunity for Kirby Bates to strengthen its service and scope in healthcare executive leadership,” said Melissa A. Fitzpatrick, president of Kirby Bates Associates and Tyler & Company. “With its range of high-profile clients and service expertise, Tyler & Company’s complementary offerings are highly aligned to Kirby Bates’ strategy to lead the market by expanding services throughout the C-suite and across the continuum of care.”
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media