SPAR Group Announces South African JV That Will Generate $7 Million in Revenue
SPAR Group, Inc. (NASDAQ: SGRP), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced that the company, through its subsidiary in South Africa (SGRP Meridian), has completed the signing of a joint venture agreement to expand its operations in South Africa. SGRP Meridian will control a 51% ownership interest in the new company; CMR Meridian (Pty) Ltd. Partnering with SGRP Meridian in this new subsidiary is Combined Manufacturers National (Pty) Ltd, a leading merchandising and marketing services company providing services in the "Inland Territory" of South Africa.
Combining the resources and expertise of these two companies should expand their respective profitability through realized operational synergies. In addition, their respective client bases will now enjoy the opportunity to secure a continuous merchandising and marketing program on a national basis in South Africa. Based on this transaction alone, SPAR's annualized revenue in this critical territory is projected to increase by approximately $7 million.
"SPAR Group is extremely pleased to announce our geographic expansion throughout this pivotal international location," said Gary Raymond, Chief Executive Officer of SPAR Group Inc. "CMR Meridian" will augment our international revenue while providing a true national retail presence throughout South Africa. This joint venture coupled with our recently announced $3.5 million contract, also pertaining to retail markets within the country's inland areas, has solidified South Africa as one of SPAR Groups largest international businesses. We continue to drive strong growth in our international division and this will increase our profitability starting in the fourth quarter of 2012."
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