SPAR Group Completes Acquisition of Wings & Ink
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TARRYTOWN, NY, Apr 06 (MARKET WIRE) --
SPAR Group, Inc. (NASDAQ: SGRP) (the "Company" or "SPAR"), a leading
supplier of retail merchandising and other marketing services throughout
the United States and internationally, today announced it has completed
the acquisition of Wings & Ink, a leading marketing and merchandising
company serving customers throughout Canada. The transaction is expected
to generate at least $3 million in annualized revenues.
Wings & Ink marks the second acquisition, including National Marketing
Services, which SPAR has made within the last 4 months. The combined
acquisitions will add approximately $9 million in total revenue on an
annualized basis. The Wings & Ink transaction is in line with the
Company's previously announced growth strategy of acquiring synergistic
businesses that can be immediately implemented into the Company's core
marketing and merchandising business. This acquisition is being funded
with existing working capital and a portion of existing debt. The final
purchase price of the acquisition is based on a twenty-four month earn
out agreement.
Wings & Ink further enhances SPAR's existing presence in Canada through
its subsidiary, SPAR Canada. Wings & Ink operates in a similar fashion to
SPAR through two divisions, marketing and merchandising services. Wings &
Ink was founded in 1994 and has built a reputation and brand name as a
quality company in the industry, providing excellent customer service.
The transaction adds many new clients to SPAR Canada's customer base
which are well known retailers and consumer package goods manufacturers.
SPAR Canada welcomes Wings & Ink's core management team, including the
managing director, to the SPAR Canada team. The new management team's
experience in operating within the merchandising industry in Canada is
expected to help grow SPAR's business through new customer relationships
and cross selling opportunities.
"Operating in the niche business of marketing and merchandising services
and being an industry leader has presented SPAR with the fortunate
opportunity to acquire valuable assets at attractive valuations to help
fuel the growth of our business," stated Gary Raymond, President and CEO
of SPAR Group Inc. "Today SPAR Canada is operating successfully on a
national and multi-lingual basis in Canada and continues to enjoy a
strong recurring business with existing customers. Wings & Ink not only
adds a new retail and manufacturing customer base, but also helps us
enhance our market penetration in all geographical regions of Canada
through the added workforce and reach of Wings & Ink. We believe the
combination of our proprietary technology, the Wings and Ink team and
their great customer service is a winning platform for growth and margin
improvements. Although the transaction closed on April 1, 2010 both teams
have been working diligently over the past several months to ensure that
the finalized combination of SPAR Canada and Wings & Ink would make a
seamless transition. Going forward we will continue to aggressively
evaluate acquisition opportunities such as Wings & Ink and National
Marketing Services to help grow our business and further cement ourselves
as an industry leader."
About Wings & Ink
Founded in 1994 by Andre Leclipteux and Wendy Golding,
Wings & Ink is a communications company with Merchandising and Marketing
arms. With a merchandising rep team numbering close to 1,000 and an
expanding head office crew, Wings & Ink has grown considerably since
inception. Wings & Ink is proud to represent some of North America's most
respected corporations. For more information please visit
www.wingsink.com.
About SPAR Group
SPAR Group, Inc. is a diversified international
merchandising and marketing services company and provides a broad array
of services worldwide to help companies improve their sales, operating
efficiency and profits at retail locations. SPAR Group provides product
services, project services, in-store events, radio frequency
identification ("RFID"), technology services and marketing research
covering all product and trade classifications, including mass market,
drug store, convenience store and grocery chains. Product services
include product additions; placement, reordering, replenishment,
labeling, evaluation and deletions, and project services include seasonal
and special product promotions, product recalls and complete setups of
departments and stores. The company operates throughout the United States
and internationally in 12 of the most populated countries, including
China and India. For more information, visit the SPAR Group's Web site at
www.sparinc.com.
Certain statements in this news release and such conference call are
forward-looking, including (without limitation) growing revenues and
profits through acquisitions, attracting new business that will increase
SPAR Group's revenues, continuing to maintain costs and consummating any
transactions. Undue reliance should not be placed on such forward-looking
statements because the matters they describe are subject to known and
unknown risks, uncertainties and other unpredictable factors, many of
which are beyond the company's control. The company's actual results,
performance and trends could differ materially from those indicated or
implied by such statements as a result of various factors, including
(without limitation) the continued strengthening of SPAR Group's selling
and marketing functions, continued customer satisfaction and contract
renewal, new product development, continued availability of capable
dedicated personnel, continued cost management, the success of its
international efforts, success and availability of acquisitions,
availability of financing and other factors, as well as by factors
applicable to most companies such as general economic, competitive and
other business and civil conditions. Information regarding certain of
those and other risk factors and cautionary statements that could affect
future results, performance or trends are discussed in SPAR Group's most
recent annual report on Form 10-K, quarterly reports on Form 10-Q, and
other filings made with the Securities and Exchange Commission from time
to time. All of the company's forward-looking statements are expressly
qualified by all such risk factors and other cautionary statements.
Contact:
James R. Segreto
SPAR Group, Inc.
(914) 332-4100
Investors:
Alan Sheinwald
Alliance Advisors, LLC
President
(914) 669-0222
Email Contact
Mark McPartland
Alliance Advisors, LLC
Vice President
(910) 686-0455
Email Contact
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