TrueBlue Inc. has announced that its Board of Directors has unanimously rejected a non-binding proposal from HireQuest Inc. to acquire the on-demand division of its PeopleReady business for $105 million in cash. The Board determined that the proposal significantly undervalues this core strategic asset and is not in the best interests of shareholders.
This marks the second time HireQuest's overtures have been rebuffed. Last year, HireQuest proposed acquiring all of TrueBlue's outstanding shares at prices ranging from $7.50 to $12.30 per share, which was also rejected by the Board. HireQuest had initially planned a direct tender offer to shareholders but later abandoned that approach, opting instead to re-engage with the Board.
In this latest attempt, HireQuest employed a "step-by-step" strategy, targeting only the on-demand division of PeopleReady and not involving TrueBlue's faster-growing skilled and renewable energy staffing segments. HireQuest CEO Richard Hermanns stated that the on-demand division has "been an underperformer for TrueBlue for years," and that HireQuest's franchise model is "better suited to unlock the profit potential of this business." TrueBlue's Board and management, however, do not share this view.
In a statement, the TrueBlue Board elaborated on its reasoning for the rejection. Despite challenging market conditions, the on-demand business has shown improving weekly trends, better regional performance, and steady growth in local client activity. The Board specifically noted, "The On-Demand business is a strategic core asset experiencing demand growth and strong momentum, even in challenging market conditions."
The Board expressed confidence in the long-term, sustainable value it can create by enhancing sales functions, expanding share in more attractive end markets, and leveraging technology and operational excellence to drive efficiency. This confidence comes as TrueBlue anticipates its fourth consecutive quarter of growth.
This acquisition play unfolds during a pivotal transition for TrueBlue's financial performance. According to the company's Q1 2026 report, while total revenue reached $399 million, an 8% year-over-year increase and near the high end of expectations, profitability faced pressure from two main areas. First, the gross margin fell by 340 basis points year-over-year to 19.8%, partly due to a favorable prior-year adjustment for workers' compensation reserves not repeating. Second, the faster-than-average growth of the lower-margin energy business within the PeopleReady segment also weighed on margins.
In response to these profit pressures, the company tightly controlled selling, general, and administrative expenses, reducing them by 8% year-over-year to $87 million. Notably, the energy segment's revenue doubled for the third consecutive quarter, with roughly one-third of active energy projects now serving AI data center demand, positioning it as a potential new profit driver.
As of May 12, 2026, the PeopleReady segment, which houses the on-demand business, reported Q1 revenue of $225 million, a 19% year-over-year increase, making it the company's largest revenue source. TrueBlue considers the $105 million offer to be a "significant undervaluation" relative to the business's intrinsic value. The offer equates to approximately $3.45 per share, a figure the Board views as inadequate, especially in light of its previous rejection of a full-company buyout offer of up to $12.30 per share.
The company stated it remains committed to acting in the best interests of all shareholders and does not intend to comment further unless future disclosures are warranted. Following the announcement of the rejection on May 26, TrueBlue's stock closed up 4.06% for the day, suggesting investor support for the Board's decision.
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