Century Business Services, Inc., Announces Acquisitions
27 July 1998
Century Business Services, Inc., Announces Five New Acquisitions Plus Two Tuck-In Acquisitions, Including Six Accounting and Tax Services Firms, Adding More Than $20 Million in Revenue
CENTURY ALSO CLOSES A PREVIOUSLY ANNOUNCED ACQUISITION
CLEVELAND, July 27 -- Century Business Services, Inc.
("Century"), the nation's fastest emerging outsourced business
services company, today announced the acquisition of seven business services
firms, including six accounting, tax and business consulting firms and one
benefits consulting firm. The acquisitions include the accounting, tax and
consulting firms of Bertram, Vallez, Kaplan & Talbot, Ltd., based in
Minneapolis, Minnesota; Daniel/Pappadakis & Company, based in Atlanta,
Georgia; Rhode, Scripter & Associates (RSA), based in Boulder, Colorado;
Regan, Russell, Schickner & Shah, P.A., based in Columbia, Maryland, and
Alexandria, Virginia; and two tuck-in acquisitions: Sayler, Soetebier, Lane &
Whitmore, based in Emporia, Kansas, and Poore, Dameron & Associates,
Chartered, based in Wichita, Kansas. Adding to its benefits consulting
services capability, Century announced the acquisition of Cornerstone Broker
Services Agency, LLC, and its related business, Southern Ohio Benefits Agency,
based in Cincinnati and Dayton, Ohio.
The proposed acquisitions, if and when completed, will add more than
$20 million to Century's annualized revenue and will bring Century's
annualized revenue run rate to more than $360 million. The acquisitions,
which are expected to close in the third quarter, are subject to further due
diligence and definitive agreements.
Commenting on the acquisitions, Michael G. DeGroote, Century's Chairman
and Chief Executive Officer, stated, "As we continue implementing our
acquisition strategy, we are pleased to add to our business services network
such high caliber firms. By continuing to consolidate successful companies,
companies that are renown for client retention and satisfaction, we are
shaping Century into the premier business services firm in the nation."
The acquisition of Bertram, Vallez, Kaplan & Talbot (BVK&T) significantly
strengthens Century's presence in the Twin Cities of Minneapolis and St. Paul.
BVK&T has developed an outstanding reputation in the business community for
professionalism and attentive customer service. BVK&T provides a wide array
of services including tax preparation, management consulting, computer
services, and financial statement preparation.
Robert Bertram, CPA and a founding principal of BVK&T, commented, "We are
excited to join an organization that shares our desire for growth and
dedication to quality and customer service. Century's network of service
providers and menu of offerings will allow us to assist our clients more than
ever while exposing us to a vast client base. We are looking forward to
working with the other Century firms already in the Twin Cities marketplace."
Daniel/Pappadakis & Company, which offers accounting, tax, and business
advisory services to a distinguished group of high-profile clients, enhances
Century's presence in the Atlanta, Georgia market. Daniel/Pappadakis serves
firms from a variety of industries, and specializes in the wholesale
distribution, professional service, restaurant, and construction sectors.
Known for its strong customer focus, Daniel/Pappadakis' reputation for quality
facilitates Century's ability to cross-service its entire menu of outsourced
business services.
Tony Pappadakis, senior partner of Daniel/Pappadakis & Company, stated,
"Our decision to join Century was based on our goal to grow our practice by
offering our clients additional high-quality services. We are confident that
the Century group of firms offers the means for us to achieve our goals."
Century enters the Boulder, Colorado market for outsourced accounting
services with the acquisition of Rhode, Scripter & Associates, a premier
certified public accounting and consulting firm operating primarily in the
Boulder metropolitan area. Founded more than 30 years ago, RSA provides a
full range of accounting, tax and consulting services, including business
management advisory services, information systems consulting, business
valuation, tax consultation, tax return preparation, and data processing to
small and mid-sized business clients. RSA prides itself on the firm's
reputation for excellence and professionalism and places a premium on
objectivity, creativity, and timeliness.
Rudy Rudolph, a senior partner of Rhode, Scripter and Associates,
commented, "Our merger with Century will broaden our access to some of the
most sophisticated accounting, technology and business networks and services
available. Not only will this give us an advantage in providing added value
to our clients, it will help guide our clients to long-term success."
The addition of Regan, Russell, Schickner & Shah, P. A., to Century's base
of accounting firms further supplements Century's strength as a national
provider of outsourced business services. Headquartered in Columbia,
Maryland, and Alexandria, Virginia, Regan, Russell, which specializes in the
construction industry, serves clients throughout Maryland, Virginia, and
Washington, D.C. Regan, Russell's capabilities extend far beyond accounting
services to include tax preparation services, litigation support, information
systems consulting, valuation services, and financial and management
consulting.
"Regan, Russell, Schickner & Shah has always known the value of acting as
a business partner rather than simply as an accounting firm," commented
Lawrence Regan, a managing partner of Russell, Regan, Schickner & Shah.
"Since our founding in 1986, one of our primary objectives has been to help
our clients succeed. With Century's resources behind us, we are in a much
better position to achieve this."
Century's two "tuck-in" acquisitions of Emporia, Kansas-based Sayler,
Soetebier, Lane & Whitmore, and Wichita, Kansas-based Poore, Dameron, &
Associates, Chartered, fortify the Company's accounting, tax, and consulting
service capabilities in the Midwest.
Cincinnati, Ohio-based Cornerstone Broker Insurance Services Agency, LLC,
and its related business, Southern Ohio Benefits Agency, act as a multi-
carrier, full-service, group health insurance brokerage firm. Cornerstone
meets the group health insurance distribution needs of insurance carriers in
the Southern Ohio region, and is one of the largest wholesalers of group
insurance in the country. A general benefits agency for four of the five
largest carriers in the region, Cornerstone handles a variety of tasks for
clients, including proposal, billing, commission, and other value-added
services.
Additionally, the Company announced the closing of the accounting, tax and
consulting firm of MRC with offices in Dayton and Columbus, Ohio.
Century Business Services, Inc. is a leading provider of outsourced
business services to small and medium sized companies throughout the United
States. The Company provides integrated services in the following areas:
accounting systems, advisory and tax; benefits design and administration;
human resources; information technology systems; payroll administration;
specialty insurance; valuation; and workers' compensation. These services are
provided throughout a network of more than 110 Company offices in 29 states,
as well as through its subsidiary, Century Small Business Solutions, a
franchisor of accounting services with 650 franchisee offices in 47 states.
The Company services approximately 102,000 clients, of which approximately
54,000 are serviced through the Century Small Business Solutions franchisee
network. Management estimates that its clients employ over one million
employees including 400,000 employed by clients of the Century Small Business
Solutions network.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those projected.
Such risks and uncertainties include, but are not limited to, the Company's
ability to integrate its newly acquired operations effectively with its
existing businesses; the Company's ability to locate and acquire other
businesses in furtherance of its aggressive growth strategy; the Company's
ability to adequately estimate its liability reserves for its insurance
businesses; the lack of market reverses in its investment portfolios;
competitive pricing pressures; general business and economic conditions; and
changes in governmental regulation affecting its insurance business or tax law
changes affecting its business services operations, which are described in
further detail in the Company's filings with the Securities and Exchange
Commission.
For further information regarding Century Business Services, Inc., call
its Investor Relations Office at 216-447-9000.