TrueBlue expands with healthcare staffing firm buy

TACOMA, Wash. - TrueBlue Inc . (NYSE:TBI), a prominent workforce solutions provider currently valued at $231 million, has announced the acquisition of Healthcare Staffing Professionals, Inc. (HSP), a company specializing in healthcare staffing for government entities. This move is part of TrueBlue’s strategy to penetrate high-growth markets and leverage the increasing demand in the healthcare sector, coming at a time when the company faces revenue challenges with a 15% decline in the last twelve months.InvestingPro data reveals that TrueBlue’s financial health score is rated as "FAIR," with 14 key investment insights available for subscribers looking to understand the complete picture of this strategic move.

The acquisition, which was conducted off-market, sees HSP joining the TrueBlue family, retaining its brand while benefiting from TrueBlue’s national presence and advanced recruitment technology. HSP’s expertise in staffing for public health departments, correctional facilities, and educational systems is expected to complement TrueBlue’s portfolio and drive growth, particularly important as analysts anticipate an 18% revenue decline for the current year.

Taryn Owen, President and CEO of TrueBlue, emphasized the strategic significance of the acquisition, citing the combined capabilities of both companies to address the burgeoning healthcare market needs. Owen highlighted the potential for enhanced value creation and community impact through the integration of HSP’s healthcare staffing proficiency with TrueBlue’s extensive network and technological resources.

Maxie Juzang, CEO and President of HSP, expressed enthusiasm about joining TrueBlue, anticipating accelerated growth and the ability to tap into TrueBlue’s expansive sales and recruitment infrastructure. Juzang also pointed out the cultural alignment between the two companies, which is expected to facilitate potential revenue synergies.

Carl Schweihs, TrueBlue’s Chief Financial Officer, described the acquisition as accretive and synergistic, enhancing TrueBlue’s growth profile. Schweihs noted that TrueBlue utilized its strong balance sheet to finance the deal with a modest debt at favorable terms, indicating a balanced and disciplined approach to capital allocation. According to InvestingPro data, the company maintains a healthy current ratio of 1.85 and operates with a moderate debt-to-equity ratio of 0.19. Further details on the financial aspects of the transaction are anticipated to be shared in TrueBlue’s fourth-quarter earnings call on February 4, 2025.

TrueBlue, which connected approximately 464,000 people to work in 2023, continues to expand its services across various industries, including industrial staffing, recruitment process outsourcing, and managed service provider solutions. The company’s stock has experienced significant pressure, down 31% over the past six months, trading at 0.71 times book value. The terms of the transaction with HSP have not been disclosed.For a comprehensive analysis of TrueBlue’s financial position and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which includes expert insights and in-depth valuation metrics.

The information in this article is based on a press release statement from TrueBlue Inc.

In other recent news, TrueBlue, Inc., a prominent staffing services provider, disclosed a 19% year-over-year decline in revenue during its latest earnings call. The company reported third-quarter revenue of $382 million, a decrease attributed to ongoing market challenges and client hesitance. Despite this, TrueBlue maintains its focus on flexible solutions, strong customer relationships, and strategic initiatives like the JobStack app and expansion into high-growth markets.

The company also experienced a net loss of $8 million and an adjusted net loss of $3 million, with adjusted EBITDA standing at $5 million. Looking ahead, TrueBlue anticipates a revenue decline of 18% to 24% in the fourth quarter. However, the company remains optimistic about future growth opportunities and plans to retain and expand customer relationships, particularly in its PeopleReady segment.

In more recent developments, TrueBlue’s PeopleManagement division secured contracts with a solar manufacturing company and a clean energy firm, contributing to the company’s growth. Despite facing challenges in the staffing industry due to reduced business spending and hiring trends, TrueBlue continues to prioritize strategic initiatives and adapt to market conditions. The company’s latest performance reflects these broader industry challenges but also showcases its commitment to exploring new opportunities in sectors like renewable energy, commercial trucking, and healthcare.

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