Employee Solutions Acquires Driver Leasing Services Company In California

Employee Solutions, Inc., the Phoenix-based professional employer organization, has completed the acquisition of KWM Corporation, known in the industry as the National Companies. KWM is a personnel leasing company specializing in driver leasing services, based in City of Industry, CA. The acquisition strengthens ESI's presence in the Southern California market.

"As previously stated, our acquisition strategy primarily focuses on identifying and completing a series of smaller transactions in markets selected on the basis of growth potential and efficient coordination with our existing locations," says Marvin D. Brody, ESI's chairman and CEO. "This strategy enables us to enter or strengthen our presence in these key markets and, in turn, to use the acquired companies as a base to fuel internal growth.

"While we will continue to pursue opportunities with larger target companies where appropriate, the KWM transaction is representative of our primary acquisition model as we continue our role as a leading PEO industry consolidator," Brody continues. "We are particularly pleased to conclude an acquisition in the driver leasing business, which typically carries higher margins than core PEO business due to a variety of additional services which are provided to the driver-leasing customer."