News

BBSI Announces Acquisition of Strategic Staffing, Inc.

7/3/2007 Print Version

VANCOUVER, Wash.--(BUSINESS WIRE)--July 3, 2007--Barrett Business

Services, Inc. (Nasdaq:BBSI) today announced that it has successfully

completed its acquisition of Strategic Staffing, Inc. based in Salt

Lake City, Utah. The transaction was previously announced on May 10,

2007, subject to completion of due diligence. Consideration for the

transaction included $12 million in cash and potential additional

consideration that is contingent on the financial performance of the

Strategic Staffing offices during the 12-month period beginning July

2, 2007. The contingent consideration, if any, will be calculated as a

multiple of pre-tax earnings above a pre-determined target.

Strategic Staffing, a privately held staffing company, operates

five offices in Utah and one office in Colorado Springs, Colorado. For

2006, Strategic Staffing's revenues were approximately $38 million and

management expects revenues for 2007 to be approximately $48 million.

BBSI anticipates that this acquisition will increase earnings by

approximately 8 to 9 cents per diluted share for the second half of

2007.

BBSI provides a comprehensive range of human resource management

solutions to large and small companies throughout many regions of the

United States.

Statements in this release about future events or performance,

including earnings expectations for 2007, are forward-looking

statements, which involve known and unknown risks, uncertainties and

other factors that may cause the actual results of the Company to be

materially different from any future results expressed or implied by

such forward-looking statements. Factors that could affect future

results include economic conditions in the Company's service areas,

the effect of changes in the Company's mix of services on gross

margin, the Company's ability to successfully integrate acquired

businesses with its existing operations, future workers' compensation

claims experience, the effect of changes in the workers' compensation

regulatory environment in one or more of our primary markets,

collectibility of accounts receivable, among others. Other important

factors that may affect the Company's future prospects are described

in the Company's 2006 Annual Report on Form 10-K. Although

forward-looking statements help to provide complete information about

the Company, readers should keep in mind that forward-looking

statements may be less reliable than historical information. The

Company undertakes no obligation to update or revise forward-looking

statements in this release to reflect events or changes in

circumstances that occur after the date of this release.

CONTACT: Barrett Business Services, Inc.

President and Chief Executive Officer

William W. Sherertz, 360-828-0700

SOURCE: Barrett Business Services, Inc.