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SPAR Group Expands into Mexico
US-based merchandising and marketing services company SPAR Group, Inc. is to launch a Mexican subsidiary, SPAR Todopromo.
The SPAR Group will hold 51% of the new company and the remaining 49% will be held by Grupo Todopromo, a merchandising company which has operated in the Mexican market since 2001. The new company will specialize in in-store merchandising and demonstrative services and will be based in four strategic locations throughout Mexico.
The parent companies are expecting the new subsidiary to generate $13m in profitable revenue over the next year. SPAR Group has also started two other joint ventures in the last two months, in India and Turkey, and is projecting a total of $20m revenue increase from these three ventures.
CEO Gary Raymond comments: 'In addition to providing immediate profitability and increased earnings, SPAR Todopromo will also provide us access to the rapidly emerging Spanish speaking consumer market while significantly increasing our North American footprint. Management is pleased with our continued geographic expansion and will continue to seek additional accretive markets in which to enter.'
Juan Medina, CEO of Grupo Todopromo, said: 'Our longstanding experience and key relationships within the Mexican marketplace, coupled with SPAR Group's proven systems and marketing solutions, will provide a strong value add to our expanding client base. We intend to leverage the projected cost saving synergies and SPAR's wide array of merchandising solutions to continue to gain market share going forward.'
SPAR Group provides product services, project services, in-store events, RFID, technology services and market research for retail services. Founded in 1967, it has offices throughout the US and also in Canada, Greece, Romania, Turkey, South Africa, India, China, Japan, and Australia.
Web sites: www.sparinc.com and www.todopromo.com.mx .
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