Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 35

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 cash that we feel should be repatriated to optimize our overall capital structure.  As of the end of the first 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.  We expect to receive additional cash proceeds related to the sale to reflect the cash-free, debt-free transaction basis, as well as working capital and other adjustments.  As of first quarter-end 2025, we have recorded a net receivable of $17.0 million.  We are actively reconciling the receivable in accordance with the purchase agreement and expects it to be settled upon completion of this process.  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.  As of first quarter-end 2025, the fair value of the earnout remained at zero, and no liability is recorded.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

As of first quarter-end 2025, we had $120.0 million of available capacity on our $150.0 million revolving credit facility and $32.8 million of available capacity on our $250.0 million securitization facility.  The revolving credit