1. News
September 9, 2022

SPAR Group considering options to maximise shareholder value

The board has begun a process to review its strategic options and retained Lincoln International as its financial advisor.

US-based merchandising and retail services company SPAR Group has launched a strategic review of its business in an effort to maximise value for its shareholders.

The company’s Board of Directors will consider a full range of strategic alternatives, including a sale, merger, divestiture, recapitalisation or going private.

The board will also consider other strategic transactions or to continue as a public, independent company. It has already begun the process.

No decision has yet been taken for any actions or potential strategic alternatives and there is no certainty that the review will result in a transaction.

SPAR Group president and CEO Mike Matacunas said: “With a strong balance sheet, 90%+ revenue growth over the last five years, increased profit margins, diversified services and long-term relationships with some of the most important consumer goods and retail companies in the world, we believe we are in the best financial and operational position in the company’s history, yet our stock continues to trade well below a comparable industry value.

“The management team is aligned with the Board that the best way to maximise shareholder value is to explore options that will unlock our potential and provide a platform for continued growth and success.

“Regardless of the process or outcome, the entire SPAR organisation will remain committed to the execution of our work, growing our business, serving our clients and supporting our employees and joint venture partners.”

Lincoln International will serve as the financial advisors to SPAR Group during the strategic review process.

The board said it has no timetable for concluding the review and will not provide any further details until it is deemed necessary.

Last month, SPAR Group recorded $67.8m in revenue for the second quarter (Q2) of fiscal 2022 (FY22).

The company’s Americas operations delivered $53.3m in revenue, representing 79% of the total figure.