Exhibit 99
For Immediate Release
Contact: Michael D. Abney Derek E. Dewan
Senior Vice President and CFO Chairman, President and CEO
(904) 360-2550 (904) 360-2525
ACCUSTAFF SUBSIDIARY, STRATEGIX SOLUTIONS, INC.,
FILES FOR IPO; SUBSEQUENT SPINOFF PLANNED
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ACCUSTAFF TO CHANGE NAME TO MODIS PROFESSIONAL SERVICES, INC.
JACKSONVILLE, Fla. (June 8, 1998)--AccuStaff Incorporated (NYSE: ASI) today
announced that its newly formed subsidiary, Strategix Solutions, Inc.
("Strategix"), which will own AccuStaff's commercial division businesses, has
filed a registration statement with the Securities and Exchange Commission
("SEC") for a proposed initial public offering ("IPO") of up to 20% of its
common stock. Strategix will apply to list its common shares on the New York
Stock Exchange ("NYSE") under the symbol "STG". The offering will be made by
Strategix, and the net proceeds plus an anticipated $150 million drawn from
Strategix's new proposed $300 million credit facility on or prior to the
offering date, will be paid to AccuStaff as part of this reorganization.
AccuStaff said that it anticipates the offering will be completed by
Strategix in the third quarter of 1998, subject to SEC review and market
conditions. After consummation of the offering, AccuStaff intends to distribute
to AccuStaff shareholders in 1999, subject to the receipt of a favorable ruling
from the Internal Revenue Service as to the tax-free nature of the distribution
and satisfaction of certain other conditions, all of AccuStaff's shares of
Strategix in a tax-free spin-off transaction. AccuStaff plans to apply the funds
it receives in the reorganization to reduce its indebtedness.
This reorganization plan results in the separation of AccuStaff into two
publicly held companies. AccuStaff will retain its information technology and
professional services divisions. Strategix will receive the assets and
subsidiaries that comprise AccuStaff's commercial division.
-MORE-
ASI Files for IPO of Strategix Solutions, Inc.
Page 2
June 8, 1998
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Commenting on today's announcement, Derek E. Dewan, President, Chairman
and Chief Executive Officer of AccuStaff, said, "We see the planned events as a
major step toward enhancing shareholder value. Our commercial division (now
Strategix) and our information technology/professional services divisions
clearly serve different segments of the business services market. The separation
of these two businesses will allow more focus on each unit's operating
performance, organic growth, efficiency, and the optimal capital structure.
Management of each group will be rewarded more directly for performance based
upon their unit's results. The reorganization will address each business unit's
needs more effectively. This includes expanding value-added service offerings to
our clients. Each division's ability to attract and retain intellectual capital,
obtain new business and make acquisitions will benefit from these changes."
Strategix Solutions, Inc. is a national provider of business services
that primarily include diversified staffing and outsourcing services to
businesses and government agencies. The company will operate in two divisions:
Specialized Solutions and Traditional Staffing Services. The Specialized
Solutions division provides customized solutions to customers, including
high-end office support and office automation resources, desktop publishing,
outsourcing, mid-level information technology ("IT") staffing, web-site design
and development, and end-user IT training. The Traditional Staffing Services
division primarily provides clerical, secretarial and, to a lesser extent, light
industrial staffing, primarily under the "AccuStaff" brand name.
Lawrence E. Derito, currently the President of AccuStaff subsidiary
Office Specialists, Inc., will become Chief Executive Officer of Strategix.
Derek E. Dewan, President, Chairman and Chief Executive Officer of AccuStaff,
will initially be Chairman of the Board of Strategix. After the spin-off, plans
call for Derito to become Chairman with Dewan continuing as a director.
AccuStaff plans to change its name to Modis Professional Services, Inc.
to clearly reflect the higher-level specialized services offered in its
information technology division (modis); and its professional services division,
which includes the accounting (Accounting Principals), legal (Special Counsel),
engineering (ENTEGEE), scientific (Scientific Staffing) and
consulting/outplacement (Manchester) units. A proxy statement will be filed with
the SEC seeking shareholder approval to change the name of the Company. After
receiving shareholder approval, Modis Professional Services, Inc. will apply to
trade on the NYSE under the symbol "MPS." Until such time, AccuStaff
ASI Files for IPO of Strategix Solutions, Inc.
Page 3
June 8, 1998
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Incorporated will continue to trade on the NYSE with "ASI" as its symbol. Derek
E. Dewan will continue as President, Chairman and Chief Executive Officer of
Modis Professional Services, Inc.
The joint lead managers of the Strategix offering are Goldman, Sachs & Co.
and Robert W. Baird & Co.
AccuStaff Incorporated is a global provider of business services, including
consulting, outsourcing, outplacement, training, and strategic staffing
services, to the Fortune 1000 and other leading businesses. Headquartered in
Jacksonville, Florida, the Company has over 1,000 company-owned, franchised, and
associated offices in the United States, Canada, the United Kingdom, Continental
Europe, and Latin America.
The offering is subject to SEC review and certain other state and local
regulatory approvals. A registration statement relating to these securities has
been filed with the SEC but has not yet become effective. These securities may
not be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
such state. A copy of the prospectus may be obtained when available from Marc M.
Mayo at Strategix Solutions, Inc., One Independent Drive, Jacksonville, Florida
32202.
Statements made in this press release, other than those concerning
historical information, should be considered forward-looking and subject to
various risks and uncertainties. The Company's actual results may differ
materially from the results anticipated in these forward-looking statements as
a result of certain factors set forth under Risk Factors and elsewhere in the
Company's reports on Forms 10-K, 10-Q and 8-K made under the Securities Exchange
Act of 1934. For instance, the Company's results of operations may differ
materially from those anticipated in the forward-looking statements due to,
among other things: the Company's ability to successfully identify suitable
acquisition candidates, complete acquisitions or integrate the acquired business
into its operations; the general level of economic activity in the Company's
markets; increased prices competition; and the continued availability of
qualified temporary personnel--particularly in the information technology and
other professional segments of the Company's businesses. In addition, the market
price of the Company's stock may from time to time be significantly volatile as
a result of, among other things; the Company's operating results; the operating
results of other temporary staffing companies; and changes in the performance of
the stock market in general.
ACCUSTAFF INCORPORATED (NYSE: ASI) PLANNED REORGANIZATION
Carve-out: AccuStaff Incorporated forms Strategix Solutions, Inc., which will
own AccuStaff's commercial division, and sells up to 20% of the
shares of Strategix in an initial public offering (step 1 and step 2
below).
Spin-off: AccuStaff plans to distribute the remainder of the common stock of
Strategix to AccuStaff's shareholders (step 3 below).
Result: Two separate publicly traded companies:
- Modis Professional Services, Inc.
- Strategix Solutions, Inc.
[Graphic diagram depicting the transactions described above appears here]