Atlas Acquisition to buy Koosharem Corp for $840 mn

Dabur's promoter family member Gaurav Burman-led Atlas Acquisition today said it will acquire US-based staffing and employment services company Koosharem Corporation for $840 million (around Rs 3,900 crore) and merge with itself.

Atlas Acquisition is a special purpose acquisition company floated by Burman for acquiring operating businesses.

The merged entity will be called Select Staffing, the company said in a statement.

"We believe that Atlas’ cash coupled with Select Staffing’s business gives Atlas shareholders an ideal platform for future value creation," Atlas Acquisition Holdings Corp President Gaurav Burman said.

The company said that after the completion of the merger, Select Staffing's current management team will remain in place with D Stephen Sorensen serving as chairman and chief executive officer, Paul J Sorensen as president, and Jeff Mitchell as chief financial officer of the combined company.

Under the merger agreement, Select Staffing shareholders will receive approximately 24,700,000 shares of Atlas, or 42.5 per cent of the combined company while Atlas founders will retire 1,000,000 shares for no consideration.

"Post closing, the combined company is expected to have a total of about 58,200,000 shares outstanding," the company said.

Besides, as part of the transaction, Select Staffing is expected to retire around $200 million in total debt. However, the proposed transaction is subject to shareholder approval of the merger agreement, it said.