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Please visit NelsonHall's HRO Insight blog for further updates from our analysts daily
posted on Jun 02, 2014 by Gary Bragar
TrueBlue announced on Monday it is to acquire U.S. based RPO and MSP provider SeatonCorp. TrueBlue is a specialist staffing organization that supports staffing and also provides onsite management services which will complement the RPO, MSP services of SeatonCorp. The SeatonCorp business beng acquired includes its:
The acquisition will make TrueBlue one of the the largest industrial staffing firm in the U.S. The transaction is expected to be completed in Q3 2014. TrueBlue's pro forma 2013 revenue is expected to increase by $600m to approximately $2.3bn.
The announcement represents a significant service expansion for TrueBlue. The staffing services of TrueBlue will be enhanced through RPO and MSP services provided by SeatonCorp. SeatonCorp only recently went through a major geographical expansion through its acquisition in February 2014 when it acquired HRX, an RPO comany with presence in Australia and New Zealand. The combined Seaton RPO practice comprises ~1,500 employees supporting RPO clients across 68 countries. Expanding globally through acquisition was natural progression.
A close alignment between the companies in the nature of the businesses is evident. TrueBlue principally support non-management roles; this aligns well to the SeatonCorp's profile where 55% of all permanent hires in its RPO practice are for non-managment. Working in the similar sectors of airline, financial services, retail, manufacturing, and transportation of the SeatonCorp business complements TrueBlue's staffing focus in the industries of construction, manufacturing, transportation, aviation, waste, hospitality, retail, and renewable energy industries.
Staffing capabilities are increasingly being enhanced by other RPO/MSP providers who look to broaden sourcing approaches, as competition for finding talent is ever increasing.