Atlantic International secures staffing deal with major distributor

ENGLEWOOD CLIFFS, N.J. - Atlantic International Corp. (NASDAQ:ATLN), a key player in strategic staffing and workforce solutions generating over $429 million in trailing twelve-month revenue, announced today that its subsidiary, Lyneer Staffing Solutions, has signed a significant workforce agreement with a leading North American distributor. The contract, which spans over 20 locations across the United States, is poised to bring in up to $10 million, split between contract business and direct hire spending. According to InvestingPro data, this news comes as the company’s stock has experienced significant pressure, down nearly 29% in the past week, though analysts suggest the stock may be undervalued at current levels.

The new partnership is set to bolster Atlantic International’s presence in the industrial staffing sector, providing temporary and permanent placement services. Jeffrey Jagid, CEO of Atlantic International, highlighted the agreement’s alignment with the company’s growth strategy and its potential to capture a substantial portion of the client’s staffing needs.

Todd McNulty, CEO of Lyneer, echoed Jagid’s sentiments, emphasizing the opportunity to extend their workforce solutions and the company’s capacity to meet contingent and direct hire staffing demands across various locations.

Atlantic International, through Lyneer, offers comprehensive HR solutions, operating numerous on-site and vendor-on-premises facilities, and paying over 12,000 employees weekly. Staffing Industry Analysts recognize the company as one of the top 20 largest national staffing firms, with Atlantic’s roughly 300 employees generating over $400 million in revenue as of September 30, 2024. InvestingPro analysis reveals the company operates with a modest 10.8% gross profit margin, reflecting the competitive nature of the staffing industry. Get access to 7 more exclusive InvestingPro Tips and comprehensive financial metrics with an InvestingPro subscription.

This press release contains forward-looking statements regarding Atlantic and Lyneer’s business prospects. While the company believes these expectations are based on reasonable assumptions, they are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Recent financial data from InvestingPro shows the company is not currently profitable, with a negative EBITDA of $13.36 million in the last twelve months.

Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the company’s position as of the date of the press release. Atlantic International does not undertake any obligation to update these statements in light of new information or future events, except as required by law. Information on these and other risks can be found in the company’s periodic reports filed with the Securities and Exchange Commission.

This news article is based on a press release statement from Atlantic International Corp.

In other recent news, Atlantic International Corp’s subsidiary, Lyneer Staffing Solutions, has secured a significant $2 million contract to supply temporary workforce services to a key food manufacturer in central Pennsylvania. This recent development presents Lyneer with the potential to increase its revenue by over $20 million through national expansion within the next 12 to 24 months. The contract establishes Lyneer as a primary provider for the Pennsylvania operations of the food manufacturer, with prospects to extend services across the United States.

Atlantic International Corp’s CEO, Jeffrey Jagid, emphasized the strategic importance of this contract win for Lyneer, suggesting that the potential national expansion aligns with the company’s growth objectives. The collaboration aims to enhance the manufacturer’s operational efficiency by leveraging Lyneer’s industry knowledge, expansive recruitment network, and tailored workforce strategies.

As part of the Atlantic portfolio, Lyneer contributes to the operation of 40 on-site and vendor-on-premises facilities, and the payment of over 12,000 employees weekly. The company, recognized as one of the top 20 largest national staffing companies, generated over $400 million in revenue for the twelve months ending September 30, 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.