US owner of leading middle market businesses, Compass Diversified Holdings (CODI), has agreed the $295m (£186m) sale of its subsidiary, multi-sector staffing agency Staffmark, to Japanese recruitment and HR services firm Recruit Co.

After adjustments, as well as for an allocation to Staffmark’s non-controlling shareholders and the payment of all transaction expenses, CODI received around $220m ($139m) of total proceeds from the sale at closing.

Alan Offenberg, CODI’s chief executive, says: “The sale of Staffmark represents a highly profitable opportunity for us to monetize our interest in a great company on behalf of our shareholders.

“… It was a difficult decision to end our long-standing relationship with Staffmark, one of our initial subsidiaries at the time of our IPO in May of 2006.

“Together, we weathered and thrived through the recent economic turmoil, building Staffmark into one of the premier staffing companies in the US, while growing the company’s cashflow significantly during our period of ownership. We wish both Staffmark and Recruit continued success in the future.”