Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 66

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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OLIDATED 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 As of May 2025, the purchase price allocation for this acquisition is final.  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, with MRP’s Sevenstep business included in ETM and the remaining operations in SET.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 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 working capital and other adjustments that were determinable and expected to be received under the cash-free, debt-free transaction structure.  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 and was recognized in (gain) loss on sale of EMEA staffing operations in the consolidated statements of earnings.  In the second quarter of 2025, the Company received proceeds of $21.8 million in connection with this receivable.  The proceeds exceeded the amount previously recorded due to favorable resolution of certain reconciliations under the terms of the purchase agreement.  As a result, $4.8 million was recognized in the consolidated statements of earnings in the second quarter of 2025, with $4.0 million recorded in (gain) loss on sale of EMEA staffing operations and $0.8 million recorded in other income (expense), net reflecting foreign currency remeasurements up to the date of settlement.  The proceeds are included in