Recruitment specialist Empresaria Group has bought 56 per cent of Marketing y Promociones for an initial £1 million. The Chilean marketing and promotions company operates under the brand name Alternattiva.
A deferred amount of up to £1 million cash is available dependent on Alternattiva’s financial performance in 2008. The remainder of the share capital will continue to be held by its management. The acquisition is conditional on the successful legal restructuring of Alternattiva’s operations and Empresaria obtaining acceptable bank funding. Completion is anticipated before the end of 2007.
In the 2007 calendar year, Alternattiva is expected to generate pre-tax profits of some CLP307 million (£291,000) on net fee income of some CLP1.6 billion (£1.5 million).
The net assets of Alternattiva as at 31 August 2007 were approximately CLP 3.4 billion (£3.25 million). The directors of Empresaria expect the acquisition to be earnings neutral in the first full year following acquisition and modestly earnings enhancing thereafter.
CEO of Empresaria, Miles Hunt, said: “The acquisition of Alternattiva is a continuation of our international expansion programme and represents the first step towards our stated goal of expanding into the South American market.
“Alternattiva is well positioned in the Chilean staffing market and, with the combination of management’s local expertise and Empresaria’s support, offers significant opportunities for growth.”