For Gevity: For TeamStaff:
Anne-Marie Megela T. Kent Smith
Senior Director, Investor Relations President and CEO
1.800.2GEVITY (1.800.243.8489), x4672 732-748-1700
annemarie.megela@gevityhr.com ksmith@teamstaff.com
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GEVITY ACQUIRES TEAMSTAFF HR OUTSOURCING PORTFOLIO
o GEVITY ADDS MORE THAN 1,500 NEW CLIENTS WITH APPROXIMATELY 16,000 WORKSITE
EMPLOYEES
o CLIENTS BENEFIT FROM SEAMLESS TRANSITION, EXPANDED SERVICES, AND TECHNOLOGY
o TEAMSTAFF TO FOCUS ON GROWING CORE HEALTHCARE STAFFING BUSINESS
o ACQUISITION IMMEDIATELY ACCRETIVE TO GEVITY
BRADENTON, FL, NOVEMBER 17, 2003 - GEVITY (NASDAQ: GVHR), the nations leading
provider of outsourced human capital management solutions and TEAMSTAFF, INC,
(NASDAQ: TSTF), a premier business outsourcing provider and the second largest
U.S. based allied healthcare staffing service, today jointly announced that
Gevity has acquired TeamStaff's Human Resource Outsourcing client portfolio and
other assets for $9.5 million in cash. The purchase price includes an escrow of
$2.5 million which is contingent on achieving a certain level of client
retention of the former TeamStaff clients.
Gevity Chairman and CEO Erik Vonk and TeamStaff CEO T. Kent Smith each believe
that this transaction positively impacts all stakeholders. Gevity can take
advantage of its infrastructure capacity, while TeamStaff will be able to focus
on its core businesses. Clients and their employees will experience a seamless
transition, and will benefit from the full depth of Gevity's services and
web-enabled technology. In addition, a number of TeamStaff associates have
joined the Gevity team with recognition of their prior service.
Mr. Vonk added, "The transaction is fully supported by the member companies of
the American International Group, Inc. (AIG) as well as the health and benefits
partners of both companies, including Aetna and Blue Cross and Blue Shield of
Florida. We are completely prepared to assimilate this new portfolio into the
Gevity family. Today each of our new clients is being personally welcomed and
will instantly be able to capitalize on the benefits of our new relationship.
Due to the strong similarity of the client profile to Gevity's current base, AIG
will provide immediate coverage for all TeamStaff worksite employees. The
transaction will not affect the terms of Gevity's current workers' compensation
program. To provide optimal convenience, existing health, welfare and benefits
plans will remain in place for TeamStaff clients, without interruption, change
in terms, or policy modifications."
SIGNIFICANT OPPORTUNITY FOR GEVITY
The acquired TeamStaff portfolio is comprised of more than 1,500 clients with
approximately 16,000 worksite employees with concentrations in New Jersey,
Massachusetts, Texas, Georgia and Florida.
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people 1st press release
For Gevity: For TeamStaff:
Anne-Marie Megela T. Kent Smith
Senior Director, Investor Relations President and CEO
1.800.2GEVITY (1.800.243.8489), x4672 732-748-1700
annemarie.megela@gevityhr.com ksmith@teamstaff.com
- ----------------------------- --------------------
Mr. Vonk commented, "This is a particularly exciting moment in Gevity's
progress. We are recognizing the first signs of organic growth in our portfolio,
which is now augmented by an acquisition that is immediately accretive to our
bottom line. Consistent with our strategy, the two forces combined accelerate
top line growth and further improve our profitability."
NEW STRATEGIC DIRECTION FOR TEAMSTAFF
Mr. Smith commented, "We are pleased that TeamStaff's PEO clients will continue
to be well served following this transaction by the industry leader in the
sector. We are especially pleased that Gevity has determined to retain
TeamStaff's sales force as well as those TeamStaff personnel who provided
day-to-day service to our former clients and their employees. From the TeamStaff
perspective, the sale of our PEO operation paves the way for us to pursue a
strategy that I believe offers our company the greatest opportunity for growth
and profitability going forward. At the core of this strategy is the further
expansion and development of our Medical Staffing division, TeamStaff Rx."
Mr. Smith continued, "The staffing market for allied healthcare is highly
fragmented and estimated to be over $1.5 billion. Healthcare technicians and
related support personnel are expected to be among the fastest growing segments
in the labor market. TeamStaff Rx is currently the number two allied health care
staffing company in the country. TeamStaff Rx is prepared to expand its
leadership in this market. As a result of this sale, TeamStaff can now
aggressively grow TeamStaff Rx by adding measurably to its sales force as well
as expanding its new Vendor Integration Program (VIP) service offering.
TeamStaff Rx unveiled its new VIP offering at the ASTRO Tradeshow in Salt Lake
City this past October, assuming a leadership position in the Allied Health
segment, as well as the Medical Staffing industry as a whole, for providing
vendor management solutions."
"The sale not only provides additional capital for internal growth," noted
Smith, "but allows TeamStaff Rx to begin to look at acquisitions to broaden
client penetration. In addition to the immediate cash from the sale, nearly an
additional $4.5 million in cash and $3.5 million in debt capacity should be
freed up over the next few years as our workers' compensation program winds
down." Mr. Smith commented, "We plan to redeploy these assets to grow our
business and enhance shareholder value."
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people 1st press release
For Gevity: For TeamStaff:
Anne-Marie Megela T. Kent Smith
Senior Director, Investor Relations President and CEO
1.800.2GEVITY (1.800.243.8489), x4672 732-748-1700
annemarie.megela@gevityhr.com ksmith@teamstaff.com
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ABOUT GEVITY
As the nation's leading provider of outsourced human capital management
solutions, Gevity helps businesses find, develop and manage their people, retain
their best employees, manage the paperwork, and protect their businesses. These
services are provided through specific offerings, such as recruiting assistance,
training, benefits administration, payroll processing and related paperwork
management, and regulatory compliance.
Gevity's business solutions are delivered through professional consultation and
leading-edge technology, embodied in Gevity Central, an online HR and payroll
community designed for business owners, managers, and employees.
ABOUT TEAMSTAFF
Headquartered in Somerset, New Jersey, TeamStaff serves clients and their
employees throughout the United States as a full-service provider of payroll
services and medical staffing solutions.
TeamStaff's TeamStaff Rx unit provides allied health professionals and nurses to
physicians' offices and medical facilities throughout the United States on a
temporary or permanent basis and offers programs and services designed to assist
medical facilities in managing their temporary medical staffing costs. DSi
Payroll Services, TeamStaff's payroll processing division, provides customized
payroll management and tax filing services to select industries, such as
construction and general contracting.
A copy of this press release can be found at www.gevityhr.com and
www.teamstaff.com.
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), Gevity HR, Inc. and TeamStaff,
Inc ("the "Companies" or "Company") are hereby providing cautionary statements
identifying important factors that could cause the Companies' actual results to
differ materially from those projected in forward-looking statements (as such
term is defined in the Reform Act) made by or on behalf of the Companies herein,
in other filings made by the Companies with the Securities and Exchange
Commission, in press releases or other writings, including in electronic form on
the Companies' respective internet web site(s), or orally, whether in
presentations, in response to questions or otherwise. Any statements that
express, or involve discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always, through the
use of words or phrases such as "will result," "are expected to," "anticipated,"
"plans," "intends," "will continue," "estimated," and "projection") are not
historical facts and may be forward-looking and, accordingly, such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results or performance of either Company
to be materially different from any future results or performance expressed or
implied by such forward-looking statements. These factors are described in
further detail in each of the Company's Annual Report on Form 10-K and in other
filings by each Company with the Securities and Exchange Commission. Each
Company cautions that these factors could cause actual results or outcomes to
differ materially from those expressed in any forward-looking statements made by
or on behalf of either Company. Any forward-looking statement speaks only as of
the date on which such statement is made, and the Companies undertake no
obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for the management of either Company to predict all
of such
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people 1st press release
For Gevity: For TeamStaff:
Anne-Marie Megela T. Kent Smith
Senior Director, Investor Relations President and CEO
1.800.2GEVITY (1.800.243.8489), x4672 732-748-1700
annemarie.megela@gevityhr.com ksmith@teamstaff.com
- ----------------------------- --------------------
factors. Further, management cannot assess the impact of each such
factor on the business of either Company or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
# # #
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people 1st press release