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.
Contacts: SPAR Group, Inc. James R. Segreto (914) 332-4100 Alliance Advisors,
LLC Investors: Alan Sheinwald, President (914) 669-0222 Mark McPartland, Vice
President (910) 686-0455
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