| | Management Consulting
Group Plc (MCG) is to
acquire Atlanta-based
consulting firm Kurt
Salmon Associates (KSA)
for $125m, in line with
MCG's strategy to
broaden and deepen its
consulting offerings.
The acquisition adds an
international market
leader in consulting to
the consumer products
and retail sectors and a
strong health care
practice in the United
States to MCG’s roster
of specialist
consultancies.
Rolf Stomberg,
chairman of MCG, said:
"KSA is a well managed | |
|
| | and profitable business
with growing revenues.
It has a strong foothold
in the US, the world's
largest consulting
market, and a high
quality client base. The
combination of this
business with our
existing portfolio will
benefit all
stakeholders."
MCG said the deal
re-balances its mix of
revenues towards the
world's largest
consulting market, the
United States, following
its acquisition of Ineum
with its substantially
European business in
2006. Furthermore, the | |
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| | acquisition increases
MCG's Asian presence and
provides a platform for
further development in
growing markets.
MCG said the
acquisition, under which
it is paying $75m in
cash, funded through a
new debt facility, and
the remainder through
the issue of new shares,
would be earnings
enhancing by 2008.
KSA, which was
founded in 1935,
operates through two
divisions: the consumer
products and retail
division and the health
care division. For the
year ended 31 December | |
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| | 2006 it reported
revenues of $153m.
It has a network of
offices in North
America: Atlanta, Los
Angeles, Mexico City,
Minneapolis, New York,
Philadelphia, Princeton,
San Bruno and San
Francisco; in four
countries in Europe
(France, Germany, the
Netherlands and the
United Kingdom); and in
two countries in Asia
(China and Japan). KSA
additionally has
collaboration
arrangements with
consultancies in India
and Spain.
The consultancy | |
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| | employs approximately
550 people and was
ranked as one of the
"Ten Best Consulting
Firms to Work For" by
Consulting Magazine in
each of the six years
from 2002-2007.
MCG currently
comprises six specialist
consultancies: CBH
Consulting, which it
bought earlier this
month for £10.6m, Ineum
Consulting, Parson
Consulting, Proudfoot
Consulting, Salzer
Consulting and Viaduct
Consulting.
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