Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 60

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 60
---
. As of first quarter-end 2025, the value remained at zero, and no liability is recorded (see Fair Value Measurements footnote).  The merger agreement contains representations and warranties and covenants customary for a transaction of this nature.  

14 

KELLY SERVICES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(UNAUDITED)

The total consideration was as follows (in millions of dollars):Cash consideration paid$425.0 Estimated cash acquired13.6 Estimated net working capital adjustment1.4 Total cash consideration440.0 Additional consideration payable3.4 Net working capital adjustment1.4 Total consideration$444.8 The purchase price allocation for this acquisition is preliminary and could change.  None of the goodwill generated from the acquisition is expected to be deductible for tax purposes.  MRP's results of operations are included in the ETM and SET segments.Disposition of EMEA Staffing OperationsOn January 2, 2024, the Company completed the sale of its EMEA staffing operations (“disposal group”), which was included in the Company's former International operating segment, to Gi Group Holdings S.P.A. (“Gi”).  Upon closing, the Company received cash proceeds of $110.6 million, or $77.1 million net of cash disposed, which was included in investing activities in the consolidated statements of cash flows.  The total gain on the transaction as of first quarter-end 2024 was $11.6 million, which was recorded in the gain on sale of EMEA staffing operations in the consolidated statements of earnings.  The Company expects to receive additional net cash proceeds to reflect the cash-free, debt-free transaction basis, as well as working capital and other adjustments.  The Company will not receive any proceeds from the contingent consideration opportunity associated with the transaction.  In the first quarter of 2024, the Company recorded a euro-denominated receivable from Gi of $26.9 million representing the adjustments that were determinable and expected to be received.  In the second quarter of 2024, the Company recorded negative working capital and other adjustments of $10.1 million, which reduced the net receivable from Gi.  As of first quarter-end 2025, the net receivable was $17.0 million, compared to $16.4 million as of year-end 2024, with the change of $0.6 million related to foreign currency