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Two big names in Meeting, Events and Performance Improvement have announced a major deal designed to strengthen, promote and genuinely fulfill global services.
Maritz Inc. (Maritz), one of the oldest and probably the largest companies in the meetings, events and incentive sector (ME&I), and The Grass Roots Group PLC (Grass Roots), the UK headquartered multi-national performance improvement company have announced a unique alliance that will strengthen their ability to meet the growing demand from multi-national clients for international programmes.
Maritz, headquartered in St Louis, USA, has created a closer working relationship with Grass Roots by selling a controlling stake in its ME&I businesses in Europe to Grass Roots, and in turn taking a minority equity interest in Grass Roots. The agreement does not include the Maritz Research business, which has offices in the United States, Canada, the United Kingdom and Germany.
Maritz strength in the USA has been in ME&I, market and customer research, learning solutions and loyalty marketing, and with a crop of Fortune 500 as clients has been keen to make global services a practical reality. Grass Roots has become the largest European player providing full service performance improvement, expanding from its No1 position in the UK to reach across Europe, Latin America and the Middle East.
Maritz operations in ME&I in the UK, Germany, France and Spain, will become part of The Grass Roots Group PLC. The move will provide a powerful full service presence in the key markets of Germany, France, Spain and the Maritz original base in Europe, Marlow, UK. Grass Roots will operate the former Maritz businesses in the United Kingdom and Germany under the Maritz brand.
With the addition of the four businesses, The Grass Roots Group predicted revenues for the up-coming fiscal will be 350 million Euros, further strengthening its market leadership.
Maritz with its Fortune 500 blue chip client list will benefit from having a strong new partner to assist the cream of American corporations to service their needs on a growing global scale. Maritz is to remain a shareholder in the business being acquired by Grass Roots, and will take a small stake in its new global partner.
'This transaction enables us to provide the global offering that our clients are demanding, while concentrating our ME&I management resources on growth in our core North American market,” says Steve Maritz, chairman and chief executive officer of Maritz. 'We’re pleased to partner with Grass Roots because of their strong portfolio of services and robust approach. David Evans, their chairman and founder, cut his teeth as an executive of Maritz, and I felt a natural rapport with him.”
David Evans commented 'This is a proud moment and I am honoured to be able to take the Maritz ME&I interests in Europe into the ever growing Grass Roots family of businesses. I have no doubt that the only way to provide genuinely global solutions is to have a real interest in the equity of partners.'
Notes:
The Grass Roots Group PLC (Grass Roots) acquires Maritz Europa Ltd, to include its meetings, events and incentive businesses in the UK (Marlow), Germany (Dusseldorf), France (Paris) and Spain (Madrid).
Predicted sales for next fiscal 350 Euro million.
Clients covered by the enlarged group exceed 2000 businesses across Europe, LATAM and the Middle East.
Maritz to retain shareholding in Maritz Europa Ltd, and the brand to be retained within the UK by The Grass Roots Group.
The French and Spanish businesses will adopt the Grass Roots name while the UK and German services will continue to carry the Maritz brand.
David Evans, Chairman & CEO of The Grass Roots Group PLC, and Nigel King, Grass Roots Group FD, will join Nick Bender, Graham Frazer and Graham Corfield on the Marlow Board.
Nick Bender as Managing Director will head the management team in Marlow.
Funding for the deal is being met entirely from Grass Roots own resources (no borrowings).
The Maritz European Research businesses in the UK and Germany are to remain outside the deal, staying with the US parent, but with a range of clients in common, cooperation will be important and has formed part of the overall negotiations.
For more information contact Nick Wake at Grass Roots, 01442 829351 email nick.wake@grg.com
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