Acquisition (2115R)
November 01 2011 - 3:00AM
UK Regulatory
TIDMMMC
RNS Number : 2115R
Management Consulting Group PLC
01 November 2011
1(st) November 2011
Management Consulting Group PLC
Acquisition of Chinese consulting business
Management Consulting Group PLC ("MCG or "the Group"), the
international professional services group, announces today that it
has acquired a retail consulting business operating in China.
MCG has acquired Vertical Retail Consulting Limited and Vertical
Retail Consulting Hong Kong Limited from Rick Keller and Nathan
Burkland. Cash consideration of US$2.25 million was paid on
completion of the transaction.
The acquired business operates in mainland China from a base in
Shanghai, in Hong Kong and elsewhere in Asia. It provides
management consulting services to clients operating in the retail
and consumer goods sector. The business serves both well known
international brands already active in or in the process of
entering the Chinese market, and local retailers which are
expanding rapidly in terms of store and brand development. It has
been established for approximately three years and has undertaken
more than seventy client projects during that time. The business is
expected to generate revenues in 2011 of approximately US$4 million
and has a strong order book and sales pipeline which extends into
2012.
Rick Keller and Nathan Burkland will continue to work in the
business, which is well placed to expand as part of the global
retail and consumer goods consulting practice of Kurt Salmon. The
market for management consulting services in China is expected to
continue to grow strongly, in the retail sector in particular.
Further consideration of up to US$1.5 million in cash and
1,350,000 MCG ordinary shares may be payable to the vendors in the
event that the acquired business achieves certain performance
targets in the period up to 2014.
Nick Stagg, MCG's CEO commented:
"China is an important and fast growing market for management
consulting services. I am pleased that we have strengthened Kurt
Salmon's global position in the retail consulting sector with this
acquisition. I welcome our new colleagues to Kurt Salmon and MCG
and I look forward to building on the exciting opportunities to
serve our clients in China and elsewhere."
For further information please contact:
Management Consulting Group PLC Tel: +44 20 7710 5000
Nick Stagg, Chief Executive
Chris Povey, Group Finance Director
FTI Consulting Tel: +44 20 7831 3113
Ben Atwell, Susan Quigley
Notes to editors:
Management Consulting Group PLC (MMC.L) provides professional
services across a wide range of industries and sectors.
It comprises two independently managed practices: Alexander
Proudfoot and Kurt Salmon. Alexander Proudfoot develops and
implements operational improvements to its clients to increase
productivity and reduce costs. Kurt Salmon provides consultancy
services to a wide range of industries in both the private and
public sectors. The Group operates worldwide. For further
information, visit www.mcgplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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