ProfitScout
2 months ago
$ATLN News: Atlantic International Corp. and Staffing 360 Solutions, Inc. Enter Into Definitive Merger Agreement to Establish Leading Human Capital Management, Outsourced Services and Workforce Solutions Company
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
Atlantic will acquire all outstanding shares of Staffing 360 Solutions in a transaction valued at approximately $25 million
ENGLEWOOD CLIFFS, N.J. & NEW YORK--(BUSINESS WIRE)-- 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 90% and 10%, respectively, of the combined company on a fully diluted basis.
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 $620 million and allows us to become an even bigger force in the broad staffing sector. Our objective is to build a multibillion-dollar diversified services company through both organic growth and M&A, and this transaction is consistent with the achievement of our goals.
“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 the United States whose management teams recognize the value of outsourcing and the trends toward engaging flexible workforces. This merger is a testament to the strengths of our respective brands and the accomplishments of our dedicated team members.”
Anticipated Benefits to Shareholders from the Merger
Enhanced scale and liquidity with potential for premium valuation: With a pro-forma revenue base of approximately $620 million, Atlantic and Staffing 360 shareholders are expected to benefit from the scale, liquidity and capital alternatives of a larger combined company. Additionally, larger capitalized human capital management and workforce solutions companies have historically carried premium valuations.
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.
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 $400 million in revenue (for the twelve months ended June 30, 2024). According to Staffing Industry Analysts, Atlantic is among the top 20 largest national staffing companies servicing the light industrial, commercial, professional, finance, direct placement, and managed service provider verticals. Atlantic provides its customers with complete HR solutions, operating 40 independent on-site and vendor-on-premises facilities and paying over 12,000 employees weekly. For more information about Lyneer Staffing Solutions please visit www.lyneer.com. For more information about Atlantic International Corp., please visit http://www.atlantic-international.com.
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 http://www.staffing360solutions.com.
https://cts.businesswire.com/ct/CT?id=bwnews&sty=20241104899753r1&sid=acqr8&distro=nx&lang=en
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104899753/en/
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.
ProfitScout
2 months ago
$ATLN News: Atlantic International Corp. Expands $11 Million Partnership with Food Production Leader, Aiming for 25% Growth and New Locations
ENGLEWOOD CLIFFS, N.J., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Atlantic International Corp. (“Atlantic”) (OTC: ATLN), a leading provider of strategic staffing outsourced services and workforce solutions, today announced that its subsidiary Lyneer Staffing Solutions has agreed to a substantial extension of Lyneer’s partnership with a premier food production company. This strategic collaboration, building on a long-term relationship with annual renewals, involves a total spend of $11 million with up to an additional 25% increase, which could bring the partnership value to approximately $13.75 million. The extension solidifies Lyneer's existing business and encompasses additional locations with the customer, representing an annual spend of $10 million. This expanded partnership marks a significant milestone in Lyneer's growth trajectory within the food production industry, reinforcing its position as a trusted workforce solutions provider.
Todd McNulty, CEO of Lyneer Staffing Solutions, expressed his enthusiasm about the expanded relationship: “At Lyneer, we deeply value our client partnerships and are thrilled to contribute to their growth by providing top-tier staffing solutions. This expansion is a testament to our team's dedication and our clients’ trust in us to meet their workforce needs efficiently and effectively.”
The partnership extension reinforces Lyneer's position in the food production sector and aligns with the company's strategic growth objectives.
Jeffrey Jagid, CEO of Atlantic International, commented on the significance of this development: “Our partnership approach is at the core of Atlantic International's business philosophy. We are excited about the continued growth in this market and remain committed to fostering long-term relationships that drive mutual success for our clients and our organization.”
This expanded collaboration showcases Lyneer Staffing Solutions' ability to adapt to client needs and industry demands, further solidifying its reputation as a trusted partner in workforce management.
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 $400 million in revenue (for the twelve months ending June 30, 2024). According to Staffing Industry Analysts, Atlantic is among the top 20 largest national staffing companies servicing the light industrial, commercial, professional, finance, direct placement, and managed service provider verticals. Atlantic provides its customers with complete HR solutions, operating 40 independent on-site and vendor-on-premises facilities and paying over 12,000 employees weekly.
For more information about Lyneer Staffing Solutions please visit http://www.lyneer.com.
For more information about Atlantic International Corp., please visit http://www.atlantic-international.com.
Forward-Looking Statements & Safe Harbor Statement
With the exception of the historical information contained in this press release, the matters described herein, may contain “forward-looking statements” relating to the business of Atlantic, and its subsidiary company Lyneer. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact
Kale Fein
kfein@atlantic-international.com
+1 (213) 915-6414
https://www.globenewswire.com/newsroom/ti?nf=OTI1MzkxNCM2NTI2NDI1IzIyMjIwMDE=
https://ml.globenewswire.com/media/YjAzYjUzNzQtMTEzOC00MDRkLWI2MTctYTY0ZDJhYzk1Y2Q4LTEyMzM1NTQ=/tiny/Atlantic-International-Corp-.png
Source: Atlantic International Corp.
ProfitScout
3 months ago
$ATLN News: Atlantic International Corp. Expands Footprint with New Temple, TX Location
ENGLEWOOD CLIFFS, N.J., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Atlantic International Corp. (“Atlantic”) (OTC: ATLN), a leading provider of strategic staffing outsourced services and workforce solutions, today announced a new location in Temple, TX for its subsidiary Lyneer Staffing Solutions, marking a significant milestone in the company's strategic expansion.
This latest addition to Lyneer's network will support a leading industrial automation company. It underscores Lyneer’s commitment to forging partnerships with key industry players and reinforcing its dedication to providing cutting-edge workforce solutions that optimize productivity and fuel client growth.
Lyneer Staffing Solutions' CEO, Todd McNulty, commented on the expansion: “Our new Temple, TX location represents a pivotal step in strengthening our regional presence. This facility will empower us to provide more responsive, tailored solutions to our clients, addressing their dynamic staffing challenges in today's rapidly evolving business landscape.”
Jeffrey Jagid, CEO of Atlantic, emphasized the importance of this expansion: “Our growth strategy at Atlantic International is deeply rooted in fostering strong, mutually beneficial partnerships. The expansion of Lyneer Staffing Solutions into Temple, TX, exemplifies our commitment to growing alongside our clients and adapting to their evolving needs. By strengthening our presence in key markets, we're not just expanding our footprint but enhancing our ability to deliver value and drive success for our partners.”
With an established reputation for excellence across multiple industries, this strategic expansion further solidifies Lyneer's position as the go-to staffing partner for businesses seeking top-tier talent and innovative workforce solutions.
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 $400 million in revenue (for the twelve months ending December 31, 2023). According to Staffing Industry Analysts, Atlantic is among the top 20 largest national staffing companies servicing the light industrial, commercial, professional, finance, direct placement, and managed service provider verticals. Atlantic provides its customers with complete HR solutions, operating 40 independent on-site and vendor-on-premises facilities and paying over 12,000 employees weekly.
For more information about Lyneer Staffing Solutions please visit http://www.lyneer.com.
For more information about Atlantic International Corp., please visit http://www.atlantic-international.com.
Forward-Looking Statements & Safe Harbor Statement
With the exception of the historical information contained in this press release, the matters described herein, may contain “forward-looking statements” relating to the business of Atlantic, and its subsidiary company Lyneer. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact
Kale Fein
kfein@atlantic-international.com
+1 (213) 915-6414
https://www.globenewswire.com/newsroom/ti?nf=OTIyNjI3MiM2NDY2MDY0IzIyMjIwMDE=
https://ml.globenewswire.com/media/MTgxZjM5ODEtMmQ5Ny00NzIzLWI5OTktMmQyZTI2NWFlM2VkLTEyMzM1NTQ=/tiny/Atlantic-International-Corp.png
Source: Atlantic International Corp.
ProfitScout
4 months ago
$ATLN News: Atlantic International Corp. Reports Over $104 Million in Q2 Revenue and 17% Revenue Growth for the 2nd Quarter
Growth Follows Atlantic’s Completed Merger with Lyneer Staffing Solutions, Creating a Top 40 U.S. Staffing Firm with Over $400 Million in Annual Revenue
ENGLEWOOD CLIFFS, N.J., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Atlantic International Corp. (“Atlantic”) (OTC: ATLN), a leading provider of strategic staffing outsourced services and workforce solutions, today announced its financial results for the second quarter ended June 30, 2024. “Atlantic achieved substantial revenue growth in the second quarter, which was our first reporting period as a newly public company. We are extremely proud of all our employees who work every day to deliver e-commerce logistics on time and at the right price for our customers,” said Jeffrey Jagid, Chief Executive Officer.
Key Q2 Financial Highlights:
- Revenue: Atlantic International Corp. reported revenue of $104.6 million, representing a 17% increase compared to $89.4 million for the same period last year. Growth is attributed to expansion within our existing customer base and new customer wins, as well as improving demand for our core service offerings.
- Gross Profit: Gross profit for the quarter was $11.5 million, representing 11.0% of revenue, compared to $10.9 million, or 12.2% of revenue, in the same period last year. This was driven by expansion costs as we grow our relationships with existing clients opening new facilities and our onboarding of new clients.
Margin expansion is expected as we leverage our in-place executive team, existing back-office operations and add higher margin business, including permanent staffing revenues. We expect our next acquisition to bring an array of technology customers, which we expect to result in higher margin revenue and further diversify our customer base.
- Total Customers: As of June 30, 2024, we had approximately 1,100 total customers, compared to 1,000 as of March 31, 2024, a 10% increase quarter-over-quarter.
Operational Highlights:
- Expansion Initiatives: Atlantic International Corp.’s subsidiary Lyneer continues to execute on its strategic growth initiatives, including the expansion into new markets and the launch of innovative product lines. We are targeting combined annual revenue in excess of $1 billion in 2025, including acquisitions.
- New Onsite Locations: The company successfully opened the Rock Hill, South Carolina logistics center on behalf of UPS, bolstering our position in the fast-growing Southeast market and enhancing our service capabilities for the world’s largest global logistics provider.
- Investments in Operating Platform and M&A Expertise: We are making investments in our technology and infrastructure, including personnel, today, that we anticipate will deliver long-term results. Our newly established operating platform can service 3x Atlantic’s revenue run-rate, while delivering improved client service and satisfaction.
Management Commentary
“We are pleased to report another strong quarter, driven by solid revenue growth under the Atlantic brand,” said Jeffrey Jagid, CEO. “Our focus on operational excellence and strategic expansion has enabled us to deliver robust results and strengthen our market position. Looking ahead, we remain committed to growing topline revenue through new facilitates with our existing clients, through new customer acquisition, and through strategic M&A, creating significant value for our shareholders. We also look forward to our pending uplisting to a National Securities Exchange.”
Outlook
For the third quarter of 2024, Atlantic International Corp. expects revenue to be in the range of $105 - $115 million, reflecting continued momentum in our core customer base and seasonal trends. The company anticipates margins to improve, supported by ongoing efficiency initiatives and strategic investments, as well as reduced integration costs from the completed acquisition of Lyneer.
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 $400 million in revenue (for the twelve months ending December 31, 2023). According to Staffing Industry Analysts, Atlantic is among the top 20 largest national staffing companies servicing the light industrial, commercial, professional, finance, direct placement, and managed service provider verticals. Atlantic provides its customers with complete HR solutions, operating 40 independent on-site and vendor-on-premises facilities and paying over 12,000 employees weekly.
For more information about Lyneer Staffing Solutions please visit www.lyneer.com.
For more information about Atlantic International Corp., please visit www.atlantic-international.com.
Forward-Looking Statements & Safe Harbor Statement
With the exception of the historical information contained in this press release, the matters described herein, may contain “forward-looking statements” relating to the business of Atlantic, and its subsidiary company Lyneer. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact
Kale Fein
kfein@atlantic-international.com
+1 (213) 915-6414
https://www.globenewswire.com/newsroom/ti?nf=OTIwNTUwOCM2NDI1NjI2IzIyMjIwMDE=
https://ml.globenewswire.com/media/ODUwYmRhOTEtOWJkMS00NTQxLWE1ZTgtN2UwYzJjNDhiODY3LTEyMzM1NTQ=/tiny/Atlantic-International-Corp.png
Source: Atlantic International Corp.
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