SGRP - SPAR Group Sells Majority Interest in South African and Brazilian Operations

2024-04-01 08:30:23 ET

DENVER, Colo., Apr 01, 2024 ( 247marketnews.com )- SPAR Group, Inc. (NASDAQ: SGRP ) reported, this morning, that it’s selling the majority interest in its South African Meridian Group and SGRP Brasil Participações, to minority shareholders. The transactions are expected to generate approximately $22 million USD and close in the second quarter.

“We completed a robust evaluation of the Company’s operations and structure, paying special attention to the quality of earnings for each of our businesses within each segment. Our divestitures of China, Australia, and National Merchandising Services joint ventures, as well as the sales of South Africa and Brazil included as Subsequent Event disclosures in the Form 10-K filed today, reflect the actions and results of our larger plan,” said Mike Matacunas, SPAR Group CEO.

“In working through the strategic alternatives over the last 18 months, it became clear that growing through joint venture partnerships is complex and the process of re-patriating related cash from them is even more complicated. To create long-term value for shareholders, we have taken actions to simplify SPAR Group’s operating structure, bring in cash for further growth and use our brand equity and capital on a strategy that maximizes opportunities in the market and return on invested capital. We are confident that streamlining the operations and finances at SPAR Group will allow us to accelerate growth and generate better returns for our shareholders.”

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