Acquisition

7 Nov 2007 10:18

Empresaria Group PLC07 November 2007 7 November 2007 Empresaria Group plc Acquisition in Chile Empresaria Group plc ("Empresaria" or the "Group"), the AIM-quoted internationalstaffing and recruitment specialist, is pleased to announce its first move intothe South American market. The Group has agreed to acquire 56% of the share capital of Marketing yPromociones Limitada ("Alternattiva") operating under the brand nameAlternattiva, a company based in Santiago, Chile and specialising in theprovision of outsourced sales and marketing staff. Initial consideration payablewill amount to approximately £1m, with a further maximum of approximately £1mpayable depending on financial performance in 2008. The consideration is payablein cash. The remaining 44% of the share capital of Alternattiva will continue tobe held by the Alternattiva management team. The acquisition is conditional on completion of legal restructuring ofAlternattiva's operations and the Group obtaining acceptable bank funding.Completion is anticipated before the end of 2007. In the 2007 calendar year, Alternattiva is expected to generate a profit beforetax of approximately CLP307 million (Chilean Pesos) on net fee income ofapproximately CLP1,572 million (representing approximately £293,000 and £1.5million respectively, at current exchange rates). The net assets of Alternattivaas at 31 August 2007 were approximately CLP 3.4 billion (representingapproximately £3.25 million). The Directors of Empresaria expect the acquisitionto be earnings neutral in the first full year following acquisition and modestlyearnings enhancing thereafter. Commenting on the acquisition, Miles Hunt, Chief Executive of Empresaria said: "The acquisition of Alternattiva is a continuation of our internationalexpansion programme and represents the first step towards our stated goal ofexpanding into the South American market. Alternattiva is well positioned in theChilean staffing market and, with the combination of management's localexpertise and Empresaria's support, offers significant opportunities for furthergrowth." For further enquiries please contact: Empresaria 01293 649 900Miles Hunt, Chief ExecutiveNick Hall-Palmer, Finance Director First City 020 7242 2666Allan Piper Smith & Williamson Corporate Finance Limited 020 7131 4000Azhic Basirov / Siobhan Sergeant Notes for editors: Empresaria Group plc (sector Support Services, staffing) provides specialiststaffing services across seventeen countries through 40 trading subsidiaries.Empresaria was formed in 1996 by Miles Hunt and its business model is based onthe philosophy of management equity which allows founder managers and key staffwithin Empresaria's subsidiaries to acquire or retain a meaningful stake in thebusinesses they run or work in. This information is provided by RNS The company news service from the London Stock Exchange