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Command Center, Inc. (CCNI) Enhances Role in Disaster Related Recovery Projects with Acquisition of DR Services of Louisiana

|Includes: Command Center, Inc. (CCNI)

Command Center, Inc., a national provider of on-demand and temporary staffing solutions, today announced the acquisition of the operating assets of DR Services of Louisiana, LLC, which specializes in providing disaster relief and recovery solutions throughout the country after natural events like floods, hurricanes and tornados. Command Center has formed a new wholly owned subsidiary, Disaster Recovery Services, Inc., to manage operations of DR Services. The three principals of DR Services will run this newly created subsidiary.

“DR Services’ approach to providing labor solutions, particularly in disaster-related situations, is an excellent fit with our own philosophy of how to ‘Exceed Expectations Every Time,’” said Glenn Welstad, Chairman and CEO, Command Center in a press release. “Command now benefits from the addition of the exceptional talents of DR Services’ three principals and the fine reputation they have established in the industry. We are very excited about this acquisition and how it can positively and immediately impact our growth.”

DR Services, run by Gerald Avery, Howard J. Rush and Edward S. Schmidt, Jr., made more than $5 million in 2011 responding to natural disasters. It has created a unique rapid-response model to quickly respond when incidents occur from floods to fires to oil spills. Since 2007, the company has positioned itself as the nationwide responder to disasters across the country.

“After working on projects with Command Center over the last year, we knew that we wanted to become part of this company. We are very pleased to combine our business into Command. With the expanded support and access to resources that Command can supply, we believe we will be able to accelerate the reach and growth of DR Services in the disaster relief market,” said Gerald Avery, DR Services in a press statement.

Per the agreement, Command Center agreed to pay $300,000 in installments and 1.5 million shares of CCNI stock with an incentive provision for up to 1.5 million more shares depending on company growth and stock price. At closing Command Center paid $150,000; the other half will be paid in six monthly installments of $25,000.

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