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BBSI Announces Acquisition of Strategic Staffing, Inc.

5/10/2007 Print Version

VANCOUVER, Wash.--(BUSINESS WIRE)--May 10, 2007--Barrett Business

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

agreement in principle to acquire Strategic Staffing, Inc.

headquartered in Salt Lake City, Utah pursuant to an asset purchase

agreement effective July 1, 2007. The transaction is subject to the

successful completion of due diligence. Consideration for the

transaction includes $12 million in cash due upon closing and any

additional consideration contingent upon the financial performance

during the 12-month period following the effective date. The

contingent consideration will be 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.

BBSI anticipates that this acquisition will increase 2007 earnings by

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

the year.

On May 11, 2007 at 9:00 a.m. Pacific Time, William W. Sherertz,

President and Chief Executive Officer, and Michael D. Mulholland, Vice

President-Finance, of BBSI will host a telephone conference call to

discuss this acquisition. To participate in the call, dial (877)

356-3717. The call identification number is 8757708. The conference

will also be webcast live at www.barrettbusiness.com. To access the

webcast, click on the investor relations section of the web site and

select webcasts.

A replay of the call will be available beginning May 11, 2007 at

11:00 a.m. and ending May 18, 2007. To listen to the recording, dial

(800) 642-1687 and enter conference identification code 8757708.

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, and the use of approximately

$74 million in cash and marketable securities, 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


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.