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SPAR Group Completes Acquisition of Wings & Ink
Acquisition Will Add Approximately $3 Million in Annualized Revenue; Represents
SPAR's Second Acquisition in 2010
TARRYTOWN, N.Y., Apr 06, 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 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: |
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. |
|
Alan Sheinwald,
President |
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(914)
669-0222 |
|
Mark McPartland,
Vice President |
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(910)
686-0455 |
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