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SPAR Group Completes Acquisition of National Marketing Services Assets
TARRYTOWN, N.Y., Jan. 21, 2010 -- 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 key assets of National Marketing
Services ("NMS"). The transaction is expected to generate at least $6 million
in additional revenues to SPAR's 2010 revenues.
By acquiring
NMS's U.S. and Canadian operations, SPAR is executing its plan to close
transactions which are synergistic to their core businesses, by adding
profitable businesses with strong customer relationships, while experiencing
minimal to no dilution for shareholders. This transaction is in line with the
Company's strategy to seek opportunities which will accelerate growth. This
acquisition is being funded with existing working capital and will not be
dilutive to SPAR's shareholders. The final purchase price of the acquisition is
subject to financial performance covenants based on 2010 and 2011 year end
revenue performance.
NMS consists of
two profitable entities which will add to SPAR's merchandising and marketing
services business including further expansion throughout U.S. and Canada, while
providing exposure to a new client base. NMS's U.S. based operations are
divided into two merchandising segments. The general merchandising business
will be incorporated into SPAR's U.S. operations and its furniture assembly
business will continue to operate as a separate division with its own dedicated
management and work force. This operation is responsible for assembling
furniture in both major retailers and in homes and small businesses for the
customers of these large retailers. The NMS's Canadian operations perform
similar merchandising and marketing services as its current business and will
be incorporated into SPAR's existing Canadian operation.
With the close
of the acquisition, key members of the NMS team will be retained by SPAR
Group's respective subsidiaries and daily operations will be consolidated and
reside under SPAR's U.S. and Canadian divisions. Bill Brenner, President of
NMS, will retain a key management role with SPAR related to the acquired
assets.
"We are pleased
to announce the successful completion of this asset acquisition which adds a
considerable amount of new clients and revenue, while being non dilutive to our
shareholders. As we enter 2010, management has identified several other
potential high quality transactions that will materially grow our business,"
said Gary Raymond, President and CEO of SPAR Group Inc. "Bill Brenner and his
team at NMS have built a strong business and reputation in the retail
merchandising and services market over the last 25 years with prominent
national and international retailers and manufacturers. The addition of NMS to
our portfolio of merchandising and marketing service offerings will allow us to
strengthen our long-term competitive position in our targeted markets and
enable us to service a much broader range of retailers and manufacturers."
About National
Marketing Services
Founded more
than 27 years ago by Phil Brenner, National Marketing Services was a privately
held company providing merchandising services to a variety of manufacturing and
retail partners throughout the United States and Canada. NMS last year serviced
nearly a half million retail locations throughout North America. The company
had nearly 2,000 employees, managed nationally and in Canada through four
geographic regions and 26 districts.
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: |
SPAR Group, Inc. |
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James R.
Segreto, Chief Financial Officer |
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(914) 332-4100 |
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|
Alliance
Advisors, LLC Inc. |
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Alan Sheinwald,
President |
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(914)
669-0222 |
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Mark McPartland,
Vice President |
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(910)
686-0455 |
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