Labor SMART, Inc., a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today provided an update on its acquisition strategy.

"On August 19, 2015, Labor SMART, Inc. delivered a non-binding letter of intent to acquire the operating assets of a regional staffing company with multiple branch locations across the southern US, providing skilled and unskilled employees to small and medium sized businesses," stated Ryan Schadel, President and CEO of Labor SMART, Inc. "Our initial due diligence suggests that this business will produce $12-13 million in revenue for 2015. The business does not have an On-Demand model and we would not seek to change it, rather we would seek to expand on it."

"After shedding low margin, high risk business and divesting assets with lower than ideal gross profit margins, we are able to once again focus on smart growth and scaling up our operations in a meaningful way. Labor SMART has a well-built centralized support structure that can be leveraged without a substantial increase in operating costs and we must take advantage of the resources we have. The ability to integrate and execute on acquisitions quickly are strengths we will lean on heavily for our next growth phase."

"We want to make sound acquisitions that provide good cash flow and use of resources. If an acquisition is accretive and the integration risks are minimal, it's a deal we want to look at. We are in mid to late stage conversations for two additional acquisitions that we intend to pursue should the LOI submitted yesterday reach expiration."

Labor SMART's non-binding offer will expire in five business days if not executed by the selling party. Additionally, Labor SMART disclosed it has secured a term sheet for the necessary financing to complete the acquisition. The proposed financing is not equity based.