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Kelly Services Announces Sale of Home Care Services Business Unit
| Source: Kelly Services, Inc.
TROY, MI -- (MARKET WIRE) -- February 20, 2007 -- Kelly Services, Inc., a global provider of
staffing services, today announced that the Company has signed a definitive
agreement to sell its Home Care Services business unit to ResCare, Inc.
The sale of the Home Care Services business unit will generate cash
proceeds of $12.5 million, and will result in a pretax gain of
approximately $10 million, or approximately $6 million after tax. The
transaction is anticipated to close in the first quarter of 2007. The
Home Care Services business unit reported revenue of $59 million for the
full year of 2006. The sale is not expected to have a material impact to
2007 earnings from operations or cash flows. SunTrust Robinson Humphrey
was the advisor to Kelly Services for this transaction.
Carl T. Camden, President and Chief Executive Officer, commented, "The sale
of the Home Care Services business unit is an important part of our
strategy of selectively divesting non-core assets and reinvesting the
proceeds in strategic growth initiatives. Although our home care business
is successful and profitable, we will concentrate our resources on growth
opportunities more consistent with our large global customer strategy.
We're pleased that this transaction provides our home care customers with
access to a wide range of services through ResCare."
This release contains statements that are forward looking in nature and
accordingly, are subject to risks and uncertainties. These factors
include: competition, changing market and economic conditions, currency
fluctuations, changes in laws and regulations, including tax laws, and
other factors discussed in this release and in the company's filings with
the Securities and Exchange Commission. Actual results may differ
materially from any projections contained herein.
About Kelly Services, Inc.
Kelly Services, Inc. (NASDAQ : KELYA ) (NASDAQ : KELYB ) is a Fortune 500
company headquartered in Troy, Mich., offering staffing solutions that
include temporary staffing services, outsourcing, vendor on-site and
full-time placement. Kelly operates in 30 countries and territories.
Kelly provides employment to more than 750,000 employees annually, with
skills including office services, accounting, engineering, information
technology, law, science, marketing, light industrial, education, and
health care. Revenue in 2006 was $5.6 billion. Visit
www.kellyservices.com.