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GOOSE CREEK, SC - HireQuest, Inc. (NASDAQ:HQI), a national franchisor of staffing services with a market capitalization of $136 million, has reaffirmed its commitment to acquiring staffing firm TrueBlue, Inc. (NYSE:TBI), despite the latter’s board rejecting HireQuest’s $7.50 per share offer. HireQuest CEO Rick Hermanns expressed disappointment over TrueBlue’s refusal to engage in dialogue regarding the proposal, which he believes offers shareholders a superior alternative to TrueBlue’s current trajectory.
HireQuest’s pursuit of TrueBlue has been ongoing for nearly two years, with the aim of transforming the struggling company by leveraging HireQuest’s franchise model. While HireQuest’s own revenue has faced headwinds with a 7.66% decline in the last twelve months, the company maintains strong liquidity with a current ratio of 2.18 and operates with minimal leverage, sporting a debt-to-equity ratio of just 0.08. TrueBlue’s financials have seen a decline from $2.8 billion in revenue and $134 million in EBITDA in 2016 to $1.6 billion in revenue and negative EBITDA today. According to InvestingPro, HireQuest’s financial health score stands at "Fair," with particularly strong cash flow metrics. Hermanns argues that the proposed merger would reverse TrueBlue’s fortunes, which have consistently underperformed the industry, according to Staffing Industry Analysts.
HireQuest’s proposal includes a detailed plan for converting TrueBlue’s PeopleReady offices into independently owned businesses, as outlined in the TrueBlue Merger Presentation filed with the SEC. Hermanns encourages TrueBlue shareholders to review the presentation and consider the potential benefits of the merger, which he believes will unlock value and provide an opportunity to invest in a larger, higher-margin combined entity.
While Hermanns notes HireQuest’s openness to improving the offer, including a possible cash component, the focus remains on structuring a friendly transaction that would be mutually beneficial. Despite HireQuest’s stock experiencing a significant 33% decline over the past six months, InvestingPro analysis suggests the company is currently undervalued. Investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including HQI. HireQuest’s approach emphasizes the upside potential for TrueBlue shareholders, as Hermanns questions the wisdom of investing in a company facing a decade of declines versus a combined entity with a more promising outlook.
The press release states that this news release includes forward-looking statements within the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. However, actual results may differ materially from those contemplated in these statements due to various risks and uncertainties, including the possibility that the proposed transaction may not be completed.
Investors are urged to read any future filings with the SEC related to the proposed transaction, as they will contain important information. The information in this article is based on a press release statement.
In other recent news, HireQuest Inc. reported its financial results for the first quarter of 2025, revealing earnings per share (EPS) of $0.10, which fell short of the forecasted $0.15. The company’s revenue for the quarter was $7.5 million, below the anticipated $9.3 million, marking an 11.2% year-over-year decline. Amid these financial challenges, HireQuest announced a quarterly cash dividend of $0.06 per share, scheduled for payment on June 16, 2025. In a strategic move, HireQuest proposed an acquisition of TrueBlue Inc. at $7.50 per share, representing a 61% premium over TrueBlue’s recent stock price. However, TrueBlue’s Board of Directors has not engaged with HireQuest, citing undervaluation concerns. DA Davidson maintained a Buy rating on HireQuest with a price target of $15, reflecting confidence in the company’s potential for growth through acquisitions. The firm noted HireQuest’s persistent attempts to acquire TrueBlue as part of its broader business strategy. These developments underscore HireQuest’s ongoing efforts to navigate a challenging economic landscape while seeking opportunities for expansion.
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