05 October 2012

SPAR Group Announces Joint Venture in South Africa

Tarrytown, NY – 04 October 2012 (Marketwire) - SPAR Group, Inc., 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." 

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. The Company has supplied these project and product services in the United States since certain of its predecessors were formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India. 

Source: SPAR Group