Transaction overview
First Step Staffing Inc., a mission-driven staffing company based in Atlanta, acquired certain assets from OnTime Staffing, LLC on January 10, 2018. The terms of the transaction were not disclosed, but Mufson Howe Hunter and Company LLC served as First Step's exclusive financial advisor. First Step aims to help end homelessness by providing employment services that enable individuals to secure stable housing through temporary staffing roles.
Deal structure and financing
The details of the equity and debt split for this acquisition are undisclosed. Mufson Howe Hunter acted as the lead bank on this deal, advising First Step Staffing Inc. during the negotiation process. Since no financial figures were provided by either party, it is unclear if there was any seller retained stake or lock-up terms involved in the transaction. No information regarding IPO optionality has been made public.
Strategic context
First Step's acquisition of OnTime Staffing assets aligns with its mission to expand employment opportunities for homeless individuals through temporary staffing positions. First Step’s unique model provides wrap-around support services, such as job coaching and transportation assistance, which are aimed at increasing job retention rates among vulnerable populations. This transaction is part of First Step’s broader strategy to replicate its successful Atlanta model in other cities like Philadelphia.
OnTime Staffing's rationale for divesting certain assets likely stems from a desire to refocus on core business areas or to consolidate operations and improve efficiency, possibly due to changes in market conditions or strategic priorities. The acquisition allows First Step to enhance its service offerings and scale its mission-driven impact across different geographies without the need to build infrastructure organically.
Regulatory path
No specific regulatory review details have been disclosed regarding this transaction. Given that both companies operate within the United States, it is likely that U.S. antitrust authorities reviewed the deal under the Hart-Scott-Rodino (HSR) Act. However, since the transaction did not involve public disclosure of financial terms or significant market share changes in competitive markets, no remedial actions were reported as necessary to address potential anti-competitive concerns.
The jurisdictions most likely involved would be those within the United States where both First Step Staffing Inc. and OnTime Staffing have a presence, particularly focusing on states like Georgia and Pennsylvania due to First Step's expansion efforts.