Kelly Redeploys Capital to Expand Education Business with Acquisition of Pediatric Therapeutic Services

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  • Strategic Capital Redeployment from Recent APAC Transactions Accelerates Kelly’s Specialized Growth Strategy
  • Expands Kelly Education’s industry-leading K-12 solutions offering
  • Create growth opportunities in the $20 billion therapeutic services sector

TROY, Mich., May 3, 2022 /PRNewswire/ — Kelly (Nasdaq: KELYA) (Nasdaq: KELYB) today announced that it has acquired Pediatric therapeutic services (PTS), a specialty company that provides state and federally mandated school-based therapy services, including occupational therapy, physical therapy, speech therapy, and mental and behavioral health. Headquarters in the suburbs philadelphia creamPTS currently supports schools through Pennsylvania and Delaware and will continue to operate under its own brand as part of Kelly Education as it leverages Kelly’s national profile to expand into other states. Terms of the acquisition were not disclosed.

PTS has an impressive track record of year-over-year growth and a successful track record of securing contract renewals. This growth reflects the growing demand for school-based therapeutic services as the pandemic has taken its toll on students. According to U.S. Department of Education, Individuals with Disabilities Act (IDEA), More than 7.3 million K-12 students are now entitled under US law to therapeutic benefits. Finding and managing a large pool of service providers can be complex and costly for schools already facing budget constraints. PTS relieves this pain point and provides a proven, scalable platform that enables schools to contain costs, increase efficiency, and improve student outcomes.

“We are delighted to welcome PTS to Kelly as we continue to redeploy capital and add high-margin, high-growth assets to our core businesses,” said Pierre QuigleyPresident and CEO of Kelly. “Earlier this year, we announced that we would use proceeds from our APAC transactions to accelerate the growth of inorganic specialties, and that is precisely what we are doing with this latest acquisition. PTS provides Kelly with an entry point into the growing therapeutic services market, a specialty area where we were not present and where our education clients clearly need support.”

To provide this support, PTS has developed innovative solutions to deliver and manage therapeutic services that benefit students, schools, teachers, families and communities. Their holistic approach means students receive cutting-edge therapy delivered by the right specialist talent, and schools can focus on the students rather than the administrative challenges of managing therapy services.

“PTS shares Kelly Education’s mission to support the whole child, an approach to education that encompasses the academic, social, physical and emotional well-being of each student,” said Nicolas Soarespresident of Kelly Education. “PTS’ expertise in therapeutic services will help us create more inclusive learning environments in all classrooms and equip all of our K-12 service providers to better support ALL learners. PTS will be able to leverage our customer network of over 10,000 schools across the United States.”

“The opportunities for collaboration between our two organizations are enormous,” said Diana Fongheiser who co-founded PTS with Pam Hacket in 1998.

“From the start, it was clear that Kelly shared our values ​​and priorities when it came to caring for the whole child. Aligning PTS’s mission with the Kelly brand is deeply satisfying,” added Hackett. .

Newport Transaction Advisors, LLC, a subsidiary of NewportLLCand a leading strategic advisory firm, served as exclusive financial advisor to PTS throughout the transaction.

This press release contains statements that are forward-looking and, therefore, are subject to risks and uncertainties. These factors include, but are not limited to, changing market and economic conditions, the impact of the novel coronavirus (COVID-19) outbreak, competitive market pressures, including pricing and technological introductions and disruptions, labor market disruptions, and weakening demand for human labour. capital resulting from advances in technology, competition law risks, the impact of changes in laws and regulations (including federal, state, and international tax laws), unexpected changes in compensation claims trends workers’ compensation, unemployment, disability and medical benefit plans, or the risk of additional tax liabilities exceeding our estimates, our ability to execute our business strategy, our ability to successfully develop new service offerings, changes material in the demand for or loss of large corporate customers as well as changes in their purchasing practices, risks specific to doing business with the government or government contractors, the risk of damage to our brand, our exposure to the risks associated with services outside of traditional staff, including process outsourcing ss, licensed professional services and services connecting talent to freelance work, our increasing reliance on third parties to perform critical functions, our ability to effectively implement and manage our IT strategy, risks associated with past and future acquisitions, including the risk of related impairment of goodwill and intangible assets, risks associated with conducting business in foreign countries, including foreign currency fluctuations, exposure to potential risks market and foreign exchange risks related to our investment in Persol Holdings until disposal, risks associated with violations of anti-corruption, trade protection and other laws and regulations, the availability of qualified full-time employees, the availability of temporary workers with the appropriate skills required by customers, claims responsibilities employment-related losses and losses, including class action lawsuits and class action lawsuits, our ability to maintain critical business applications through our key data centers, risks arising from failure to maintain the confidentiality of information that we are entrusted with or to meet our obligations under global privacy laws, the risk of cyberattacks or other breaches of network or information technology security, our ability to realize the value of our tax credits and our net operating losses carried forward, our ability to maintain specified financial covenants in our banking facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in filings by the Company with the Securities and Exchange Commission. Actual results may differ materially from the forward-looking statements contained herein, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or to changes in company expectations.

About Kelly®

Kelly (Nasdaq: KELYA, KELYB) connects talented people with companies that need their skills in areas such as science, engineering, education, office, contact center, manufacturing light, etc. We are always thinking about what lies ahead in the changing world of work, and we help people let go of the script of old ways of thinking and embrace the value of all working styles in the workplace. We directly employ nearly 350,000 people worldwide and connect thousands more with work through our global network of talent providers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. To visit kellyservices.com and let us help you with what awaits you.

About Kelly Education

Kelly Education powers the future of learning by helping to make early childhood education centers, K-12 school districts, and higher education institutions stronger and more stable for leaders, administrators, professors, teachers and students. Kelly Education is a Kelly business, a global workforce solutions provider always wondering what’s next in the world of work. Learn more about KellyEducation.com.

About Pediatric Therapeutic Services (PTS)

Pediatric Therapeutic Services (PTS) Inc., headquartered in Conshohocken, Pennsylvania, provides advanced therapeutic staffing solutions to school districts, charter schools, and early intervention programs. The organization integrates comprehensive therapy management with related services and support programs to streamline operations, reduce costs and improve outcomes. PTS’s innovative service model, guided by our BudgetWatchMT technology, helps transform classrooms into therapeutic environments that support all learners. PTS was listed by Inc. Magazine of America’s 5,000 fastest growing private companies for many years, most recent in 2021.

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SOURCE Kelly Services, Inc.

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