TARRYTOWN, NY--(Marketwire -08/16/12)- SPAR Group, Inc. (SGRP), a diversified international merchandising and marketing services company that provides a broad array of services worldwide to help companies improve their sales, today announced the signing of a joint venture agreement to expand its operations in Romania. SPAR Group will control a 51% ownership interest in the company, SPAR Business Ideas Provider SRL, also known as SPAR BIP. SPAR BIP will specialize in the area of in-store merchandising.
"Management is extremely pleased with our most recent endeavor within the Romanian market, and we fully expect this addition to provide accretive earnings to our international business," stated Gary Raymond, Chief Executive Officer of SPAR Group. "The New Venture has numerous marquee clients such as Coca-Cola, Kraft Foods, and Nestlé. Management intends to leverage SPAR BIP's longstanding strategic relationships in order to expand our global footprint, increase market share and elevate our status as a leader within the merchandising and marketing services industry. We expect this new agreement to contribute approximately $4 million in revenue on an annual basis. Going forward, we will continue to evaluate similar opportunities and acquire similar profitable companies throughout 2012."
Established in 2004, Business Ideas Provider SRL maintains contracts with Fortune 500 companies such as The Coca-Cola Company (KO), Kraft Foods Inc. (KFT), Nestlé S.A. (NSRGY), JTI, and Metro and has become the largest provider of in-store merchandising services in Romania since 2010. "What differentiates us from our competition is that we always try to innovate and develop more value added products for our clients. Our partnership with SPAR will bring added worldwide marketing and merchandising expertise and vision. We look forward to applying that vision and experience to our field teams to provide a superior product to our customers," said Eugen Saulea, Managing Director and Partner of SPAR BIP.
About SPAR Group
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 provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores, as well as providing furniture and other product assembly services, in-store events, radio frequency identification ("RFID") services, technology services and marketing research. 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. Product services include restocking and adding new products, removing spoiled or outdated products, resetting categories "on the shelf" in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls. The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India. For more information, visit the SPAR Group's website at www.sparinc.com.
Certain statements in this news release are forward-looking, including (without limitation) expectations or guidance respecting the Company's business fundamentals, including its cash-flow and earnings going forward and its capital structure. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group's selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.