An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
SPAR Group, Inc. completes the acquisition of the remaining minority interest in Resource Plus, a U.S.-based joint venture, resulting in 100% ownership of the U.S. business. The acquisition aims to optimize and simplify SPAR's business operations, achieving $500,000 in operating synergies within the first 12 months post-transaction. The company will pay $3 million USD in annual payments over a five-year period as per the joint venture agreement terms.
SPAR Group, Inc. ha completato l'acquisizione dell'interesse di minoranza rimanente in Resource Plus, una joint venture con base negli Stati Uniti, ottenendo così il 100% della proprietà dell'attività statunitense. L'acquisizione ha l'obiettivo di ottimizzare e semplificare le operazioni aziendali di SPAR, realizzando sinergie operative per 500.000 dollari nei primi 12 mesi successivi alla transazione. La compagnia effettuerà pagamenti annuali di 3 milioni di dollari USA per un periodo di cinque anni, conformemente ai termini dell'accordo di joint venture.
SPAR Group, Inc. ha completado la adquisición del interés minoritario restante en Resource Plus, una empresa conjunta con sede en EE. UU., logrando así la propiedad total del negocio en EE. UU. El objetivo de la adquisición es optimizar y simplificar las operaciones de negocios de SPAR, alcanzando $500,000 en sinergias operativas dentro de los primeros 12 meses posteriores a la transacción. La empresa pagará $3 millones USD en pagos anuales durante un período de cinco años según los términos del acuerdo de empresa conjunta.
SPAR Group, Inc.는 미국에 기반을 둔 합작 투자 회사인 Resource Plus의 남은 소수 지분을 인수하여 미국 사업의 100% 소유권을 확보했습니다. 이 인수는 SPAR의 비즈니스 운영을 최적화하고 단순화하는 것을 목표로 하며, 거래 후 처음 12개월 동안 운영 시너지를 50만 달러 달성할 것입니다. 회사는 합작 투자 계약 조건에 따라 5년 동안 매년 300만 달러 USD를 지급할 예정입니다.
SPAR Group, Inc. a finalisé l'acquisition de l'intérêt minoritaire restant dans Resource Plus, une coentreprise basée aux États-Unis, résultant en une propriété totale de l'entreprise américaine. L'acquisition vise à optimiser et simplifier les opérations commerciales de SPAR, en réalisant 500 000 $ de synergies opérationnelles dans les douze premiers mois suivant la transaction. La société paiera 3 millions de dollars américains en paiements annuels sur une période de cinq ans, conformément aux termes de l'accord de coentreprise.
SPAR Group, Inc. hat den Erwerb der verbleibenden Minderheitsbeteiligung an Resource Plus, einem in den USA basierten Joint Venture, abgeschlossen und besitzt nun 100% der US-Geschäfte. Das Ziel der Akquisition ist es, die Geschäftsabläufe von SPAR zu optimieren und zu vereinfachen, wobei innerhalb der ersten 12 Monate nach der Transaktion Betriebssynergien in Höhe von 500.000 USD erreicht werden sollen. Das Unternehmen wird gemäß den Bedingungen des Joint-Venture-Vertrags jährlich 3 Millionen USD über einen Zeitraum von fünf Jahren zahlen.
Positive
The acquisition of the remaining minority interest in Resource Plus results in SPAR Group, Inc. owning 100% of the U.S. business, leading to strategic optimization and simplification of operations.
Expectation of $500,000 in operating synergies within the first 12 months post-transaction signifies potential cost savings and operational efficiencies for SPAR Group, Inc.
Full financial benefits from client contracts related to Resource Plus, including a recently signed 3-year, $12m+ annual contract with a large home improvement retailer, will now flow to SPAR Group's shareholders, enhancing financial gains.
Negative
None.
The acquisition of the minority interest in Resource Plus by SPAR Group can be seen as a vertical consolidation effort. From a financial perspective, such a move is expected to streamline operations and reduce overhead, thereby potentially increasing the company's profit margins. The forecast of $500,000 in operating synergies suggests operational efficiency gains, although it remains to be seen if these projections will meet reality within the stipulated 12-month period post-transaction. Moreover, the integration will allow SPAR Group to capture the full financial benefits of its client contracts, including a significant 3-year deal mentioned, which adds over $12 million in annual revenue. These factors combined could present a stronger value proposition to investors, as full ownership and direct control over the business might lead to more agile decision-making and operational flexibility. However, the incremental benefits must be weighed against the cost of acquisition, which is $3 million over five years. Investors should monitor the company's future financial statements for the realization of these synergies and the effect on net income and earnings per share.
When analyzing this acquisition from a market perspective, it is important to consider the broader context of SPAR Group's industry positioning. By taking full control of a joint venture that has proven beneficial, particularly one that services major players in the home improvement sector, SPAR Group is signaling its commitment to strengthening core areas of its business. This strategic move to optimize and simplify the business structure could resonate positively with clients and investors by seeming to promise enhanced service delivery and client management. This could have a knock-on effect on SPAR Group's market share and competitive standing. In addition, divesting from previous joint ventures in various countries indicates a refocusing of the company's strategic resources and attention on lucrative markets, possibly as a response to changing market dynamics or to double down on its most profitable segments.
Acquisition Results in 100% Ownership of U.S. Business
AUBURN HILLS, Mich., May 01, 2024 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ: SGRP) (“SPAR,” “SPAR Group,” or the “Company”), a provider of merchandising, marketing, and distribution services, announces the acquisition of the remaining minority interest of Resource Plus, a U.S.-based joint venture.
“SPAR established the joint venture with Resource Plus in 2017 to open new segments and expand the company’s capabilities. The JV agreement enabled SPAR to accelerate the growth of its remodel business over the last few years, including positioning the company as a service provider to the two largest home improvement retailers in the U.S.,” said Mike Matacunas, SPAR Group CEO.
“This acquisition is another step in the strategic optimization and simplification of our business. We now own 100% of U.S. business and expect the integration to achieve $500,000 in operating synergies within the first 12 months post-transaction. In addition, the full financial benefit of each client contract related to Resource Plus will now flow to our shareholders. This benefit includes a recently signed 3-year, $12m+ annual contract with a large home improvement retailer. The incremental client contract financial benefits plus operating synergies make this a timely, compelling and accretive acquisition for our business,” concluded Matacunas.
Based on the terms set in the original joint venture agreement, the Company will pay a total of $3 million USD in annual payments over a five-year period. This transaction follows the recently announced joint venture divestitures by SPAR Group of Australia, China, National Merchandising Services, Brazil, and South Africa.
About SPAR Group, Inc.
SPAR Group is an innovative services company offering comprehensive merchandising, marketing and distribution solutions to retailers and brands. We provide the resources and analytics that improve brand experiences and transform retail spaces. We offer a unique combination of scale and flexibility with a passion for client results that separates us from the competition. For more information, please visit the SPAR Group’s website at http://www.sparinc.com.
Media Contact: Ronald Margulis RAM Communications 908-272-3930 ron@rampr.com
Investor Relations Contact: Sandy Martin Three Part Advisors 214-616-2207 smartin@threepa.com
spar is a supplier of merchandising and marketing services throughout the us and internationally us services division the company's us services division provides nationwide merchandising and other marketing services primarily on behalf of consumer product manufacturers and retailers at mass merchandisers, electronics store chains, drug store chains and grocery stores. merchandising services primarily consist of scheduled dedicated routed services and special projects provided at the store level for a specific retailer or single or multiple manufacturers. these services may include activities such as ensuring that client products authorized for distribution are in stock and on the shelf, adding new products that are approved for distribution but not presently on the shelf, setting category shelves in accordance with approved store schematics, ensuring that shelf tags are in place, checking for the overall salability of products and setting new and promotional items and placing and/o
