Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 100

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 needs. As part of those reviews, we may identify cash that we feel should be repatriated to optimize our overall capital structure.  As of the end of the second quarter of 2025, these reviews have not resulted in specific plans to repatriate a majority of our international cash balances.  Following the sale of our EMEA staffing operations completed in the first quarter of 2024, discussed below, we continue to provide MSP, RPO and Functional Service Provider solutions in the EMEA region.  Therefore, we expect much of our remaining international cash will be needed to fund working capital growth in our local operations. 

On January 2, 2024, we completed the sale of our EMEA staffing operations to Gi Group Holdings S.P.A. and received cash proceeds of $110.6 million or $77.1 million net of cash disposed.  In the second quarter of 2025, we received proceeds of $21.8 million from Gi in connection with the previously recorded receivable, which was fully settled as of the second quarter-end 2025.  We will not receive any proceeds from the contingent consideration opportunity associated with the transaction.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

On May 31, 2024, we indirectly acquired 100% of the equity interests in MRP for a purchase price of $425.0 million. Under terms of the agreement, the purchase price was adjusted for estimated cash held by MRP at the closing date and estimated working capital adjustments, resulting in us paying cash of $440.0 million, funded with cash on hand and available credit facilities.  Per the terms of the agreement, there was an earnout with a maximum potential cash payment of $60.0 million due to the seller in the second quarter of 2025.  The earnout period concluded in the first quarter of 2025 and no further liability will be recognized.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

As of second quarter-end 2025, we had $130.0 million of available capacity on our $150.0 million revolving credit facility and $153.1 million of available capacity on our $250.0 million securitization facility.  The revolving credit facility carried $20.0 million of long-term borrowings on the term benchmark line of credit.  The securitization facility carried $54.