HireQuest, Inc. Closes Acquisition of TEC Staffing Services

GOOSE CREEK, SC / ACCESSWIRE / December 4, 2023 / HireQuest, Inc. (Nasdaq:HQI), a national franchisor of direct dispatch, executive search, and commercial staffing services, today announced that it has closed the acquisition of TEC Staffing Services ("TEC") (tecjobs.net), headquartered in Fort Smith, Arkansas. Simultaneously with the closing of the acquisition, HireQuest closed the sale of all TEC's offices throughout Northwest and Central Arkansas to franchisees and completed their conversion to HireQuest's Snelling franchise model. TEC generated over $34 million in total revenue for the trailing 12-month period ended September 30, 2023.

Rick Hermanns, President and Chief Executive Officer of HireQuest, commented, "TEC has been a premier provider of staffing services to the employers and workers in Northwest and Central Arkansas for over 40 years. We have some great teams of our existing franchisees partnering with members of TEC's leadership and we're excited for the opportunity they have to continue serving the region as part of the Snelling franchise family."

HireQuest's current operating infrastructure is sufficient to support the acquired offices and the Company expects any incremental SG&A expense in the fourth quarter of 2023 and beyond to be minimal. As with past acquisitions where HireQuest converts acquired operations to franchises, the company recognizes either a one-time accounting loss or a one-time accounting gain in the period that it sells those operations to a franchisee. HireQuest anticipates it is likely to recognize a notable one-time accounting loss resulting from the conversion of TEC's operations to franchises in the fourth quarter of 2023.

About HireQuest

HireQuest, Inc. is a nationwide franchisor of direct dispatch, executive search, and commercial staffing solutions for HireQuest Direct, HireQuest, Snelling, HireQuest Health, DriverQuest, TradeCorp, MRINetwork, SearchPath Global, and Northbound Executive Search franchised offices across the United States. Through its national network of over 400 franchisee-owned offices across the United States, HireQuest provides employment for approximately 81,000 individuals annually that work for thousands of customers in numerous industries including construction, light industrial, manufacturing, hospitality, clerical, medical, travel, financial services, and event services. For more information, visit www.hirequest.com.