BGSF, Inc., a workforce solutions provider in the US, announced on March 1, 2022, that it will sell its InStaff assets to JobandTalent, a job marketplace based in Spain.
The transaction should be completed during the first quarter of 2022, under the customary closing conditions.
Beth A. Garvey, President and CEO of BGSF, explained the reason for the sale by saying, “The sale of InStaff is an important step in our strategic focus on long-term value creation and will allow us to focus our strengths where we are strongest.”
BGSF originally derived all its revenue from the light industrial staffing sector through its InStaff segment. The firm later diversified into professional and real estate staffing, while continuing to develop long-term relationships with InStaff’s clients. This process primarily involved providing on-site staffing for warehousing and logistics roles, resulting in a client retention rate of 96 percent for fiscal 2021. The divestiture of InStaff allows BGSF to invest more of its capital into developing high-end consulting and managed services solutions. The net proceeds from this sale will also help drive the company’s current expansion into real estate, provide greater flexibility in its acquisition strategy and reduce its debt.
InStaff performed well during the COVID-19 pandemic and continues to show strong results amidst the severe labor shortage affecting the entire country. Garvey added that InStaff is the right acquisition for JobandTalent due to that firm’s large scale and strategy for engaging clients through digital channels. JobandTalent’s strong market position in warehousing and logistics was also a factor in BGSF’s decision.
In addition, Garvey expressed her belief that InStaff would continue to thrive under JobandTalent. Felipe Navio, Co-Founder and Co-CEO of JobandTalent, added that InStaff’s integration into his company’s existing services demonstrates its commitment to expanding in the US. He also said that it would strengthen JobandTalent’s global position by allowing it to pursue new opportunities at a faster pace. In addition, InStaff will bring JobandTalent closer to its overall goal of improving the working conditions for employees throughout the world.
BGSF was founded in 2007 and is based in Plano, Texas. In addition to the light industrial sector, it provides workforce solutions in other areas such as accounting, creative, finance, IT and real estate, including apartment and commercial buildings. BGSF has achieved scalable growth in the US by integrating other regional and national brands.
Staffing Industry Analysts ranked BGSF as the 48th largest IT staffing firm in 2021 and the 79th largest staffing company overall. BGSF has consistently demonstrated a disciplined approach to acquisition, allowing it to expand through the retention of talent and financial growth. This strategy has produced a strong management team that provides exceptional service to its talent and clients while also increasing value for its investors.
JobandTalent is a marketplace for temporary workforce staffing, which has placed over 100,000 workers so far. It earned $1 billion in revenue in 2021, making it one of the fastest growing startups in its space. JobandTalent currently has over 1,300 clients in nine countries throughout Europe and North America.
Its heavy use of data and technology is disrupting the global market in temporary labor, while the company strives to improve working conditions for its talent. For example, JobandTalent uses a Workforce-as-a-Service (WaaS) platform that provides a completely digitized matchmaking service for its clients, which include enterprise-level firms with global operations.