TrueBlue Inc. (NYSE: TBI) announced that its board of directors unanimously rejected an unsolicited proposal from HireQuest Inc. (NASDAQ: HQI) to acquire the on-demand segment of TrueBlue's PeopleReady business for $105 million in cash.

The workforce solutions provider received HireQuest's non-binding proposal on May 12. TrueBlue's board determined the offer materially undervalues the on-demand business, which the company describes as a core strategic asset experiencing increased demand despite challenging market conditions.

This marks the second rejected proposal from HireQuest. The board previously considered and rejected an unsolicited offer from HireQuest to acquire all of TrueBlue's outstanding shares last year.

TrueBlue stated its on-demand segment is showing improved territory performance, stronger weekly trends and growth in local account activity. The company reported it is entering its fourth consecutive quarter of growth.

The board expressed confidence in TrueBlue's strategic plan to enhance sales functions, expand market share in target sectors, and implement technology-driven operational improvements. The company believes these initiatives will generate long-term value exceeding HireQuest's proposal.

TrueBlue indicated it will not comment further on the matter unless additional disclosure becomes necessary. The company stated shareholders do not need to take any action at this time.

Barclays is serving as financial advisor and Sidley Austin LLP as legal counsel to TrueBlue in this matter.