DivestmentApr 8, 2026, 04:07 PM
RESOURCES CONNECTION Divests Sitrick Group for $1.4M-$2.3M, Incurs $4M CEO Severance Payment
AI Summary
Resources Connection, Inc. (RGP) announced the divestiture of 100% of the membership interests of Sitrick Group, LLC to Sitrick, LLC. This strategic move is part of RGP's broader transformation initiative aimed at simplifying its business portfolio. The sale is expected to generate a purchase price between $1.4 million and $2.3 million, based on the agreed realizable value of Sitrick client receivables. Concurrently, RGP will make a $4 million cash payment to Michael Sitrick, Sitrick's chief executive officer, representing his contractual severance.
Key Highlights
- Resources Connection, Inc. (RGP) entered into an agreement to sell 100% of the membership interests of Sitrick Group, LLC.
- The purchase price for Sitrick Group is expected to range between $1.4 million and $2.3 million, determined by the realizable value of client receivables.
- RGP will pay Michael Sitrick, Sitrick's chief executive officer, a cash payment of $4,000,000, equivalent to his employment agreement's cash severance.
- RGP will retain certain assets and liabilities of Sitrick, specifically those related to office space lease agreements.
- The divestiture aligns with RGP's broader transformation initiative to simplify its business portfolio.