HANOVER, Md., Dec. 16, 2003 (PRIMEZONE) -- Humana Trans Services Holding Corporation, a principally engaged firm involved in employee leasing and recruitment services, is pleased to announce that the firm's operating subsidiary Humana National Program Administrators has signed a memorandum of understanding to acquire Strafford, CT.-based Personnel Management Solutions, a firm involved in temp-to-perm staffing and payroll administration.
The acquisition of Personnel Management Solutions positions Humana's operating subsidiary with a dedicated presence of human resource management and worker's compensation facilitation in the New England states and adjourning territories. Taking into account this acquisition, Humana National Program Administrators generated payroll processing of $25 million for the trailing 12-months. Terms of the deal are not available. Closing is expected during Humana's second fiscal quarter in 2004.
Over the past few months, Humana has embarked on an aggressive campaign to increase its position in the employee leasing and recruitment services marketplace. Humana National Program Administrators was formed to house the firm's asset purchase of Corporate Program Administrators. Collectively, Humana National is on track to process proprietary payroll of $35-$40 million in fiscal 2004 plus associated payroll processing of $400 million through contractual arrangements.
"A huge operational savings will be realized with this transaction. It will eliminate overlapping back office operations in our Pennsylvania facilities," said John Daly, President of Humana Trans Services. "The addition of Personnel Management Solutions brings a well-rounded and highly experienced management team in payroll administration and insurance facilitation to the Humana family."
Other Corporate News
Humana National Program Administrators is on the cusp of signing a multi-year deal that will allow it to provide a suite of human resource services, including payroll management and insurance facilitation to a major financial-services entity involved in credit services and worker's compensation solutions. This deal, which should be announced by year's end, will be a significant cog to the growth potential of the company.
James W. Zimbler announced at the December board of directors meeting that he was relinquishing his board seat to take a proactive role in helping develop the core branding and development of Humana National Program Administrators.
Further action, including the naming of new independent directors, by the firm's board of directors will be taken up in January.
About Humana Trans Services Holding
Humana Trans, with corporate headquarters in Hanover, Maryland, maintains a branch office in Pennsylvania. The firm is a principally engaged entity involved in employee leasing and recruitment services. Humana, through its operating subsidiaries, is focused on the transportation industry and currently operates in FIVE states. The company looks to grow its business internally or through strategic acquisitions. With the formation of Humana National Program Administrators, the company is creating a foundation to launch its next phase of administration services. Clients of the company include Cardinal Health, Owens & Minor, Penske Logistics, Royal Ahold (and several of its subsidiaries that includes Giant Food Stores) and Safeway. Humana has a proven management team that is comprised of veterans from Coach USA, U.S. Delivery and Deloitte and Touche.
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