Century Business Services, Inc., Announces Four Acquisitions
30 July 1998
Century Business Services, Inc., Announces Four Acquisitions, Including Three Accounting Services Firms and One Tuck-In Acquisition, Adding More Than $40 Million in Revenue
CLEVELAND, July 30 -- Century Business Services, Inc.
("Century"), the nation's fastest emerging outsourced business
services company, today announced the acquisition of four business services
firms, including three accounting, tax and business consulting firms. The
acquisitions include: the accounting, tax and consulting firms of Mayer
Hoffman McCann, based in Kansas City; Beatty, Satchell & Company LLC, based in
Easton and Denton, Maryland; and Meeks, Ross, Paulk & Associates, P.A., based
in Jacksonville, Florida; and the "tuck-in" acquisition of Gibraltar Real
Estate Services Corporation, which operates in Chicago.
The proposed acquisitions, if and when completed, will add more than
$40 million to Century's annualized revenue and will bring Century's
annualized revenue run rate to more than $400 million. The acquisitions are
expected to close in the third quarter and are subject to further due
diligence and definitive agreements.
"The Mayer Hoffman McCann acquisition is a quantum leap forward in our
growth plan," commented Michael G. DeGroote, Century's Chairman and Chief
Executive Officer. "This announcement represents our largest expansion of
accounting services to date and significantly increases Century's national
prominence."
Founded in 1954, Mayer Hoffman McCann, (MHM) is the 29th largest provider
of accounting, tax, and business consulting services in the United States and
the third largest accounting firm in the Midwest. With offices in Kansas
City, Denver, Indianapolis, Boise, Topeka, Harrisburg, Pennsylvania and
Frankfurt, Kentucky, Mayer Hoffman provides Century with a broad scope of
operations strategically located across the nation. As a full-service
financial consulting firm, MHM offers clients management solutions to complex
individual and corporate business issues.
MHM's repertoire of business services include accounting, cafeteria plan
administration, employee benefit consulting, estate planning, litigation
support, valuation services and management advisory services. MHM also offers
medical billing services for physicians, technology and software development,
and real estate advisory services. Serving more than 4,000 small to medium-
sized clients, MHM boasts the advantages and resources of a national
accounting firm while retaining the accessibility and attentiveness of a local
firm. With more than half of MHM's 380 employees operating from its Kansas
City headquarters, Century enhances its business services platform by adding
to the benefits services Century currently provides in that market.
"The combination of Mayer Hoffman McCann's resources with those of Century
Business Services creates very exciting opportunities," stated Eldon G.
Walter, managing partner of Mayer Hoffman McCann. "We have always prided
ourselves on offering an array of services to our clients. By taking a broad-
based approach to a client's business, Mayer Hoffman can become a business
partner and make more of a difference in the success of a client. Teaming
with Century lets us take our comprehensive approach one step further."
Beatty, Satchell & Company LLC, has provided diverse accounting services
from offices in Easton and Denton, Maryland, for more than 25 years. A full-
service accounting, tax, and consulting firm, Beatty, Satchell provides
general corporate and tax counseling, tax preparation, accounting services,
employee benefits design and administration, estate planning, website design,
network administration, and business consulting services to more than 2,500
clients including small and medium-sized businesses, non-profit organizations,
and governmental units. Through its Professional Information Management
Services affiliate, Beatty, Satchell also offers data processing services for
accounting firms across the country.
Lou Satchell, a founding partner of Beatty, Satchell, stated, "The goal of
our firm has always been to provide the highest quality services to assist our
clients in reaching their maximum potential. It is also important to us to
create an environment that will encourage staff development and retention.
Joining Century adds a whole new level to what we can offer our clients as
well as our employees."
Meeks, Ross, Paulk & Associates, P.A. (MRP), is a Jacksonville, Florida-
based accounting firm with two decades of history providing a complete range
of accounting and tax services, as well as litigation support, process
improvement, and business valuation services to clients from a wide array of
industries.
Commenting on the decision to join Century, Jack Meeks, the president of
MRP, stated, "After seeing all the advantages we can offer our clients by
becoming a part of Century, it was clear to us that joining Century would
mutually enhance our growth opportunities."
These firms represent the latest additions to the accounting, tax, and
consulting services division of Century. Including the acquisitions announced
in today's release, over the last 18 months, Century has added 28 accounting
services firms, plus 11 Century Small Business Solutions offices, for a total
of 53 offices in 19 states. In the March 16, 1998 issue of Accounting Today
magazine, Century was ranked the 11th largest accounting firm in the nation.
Since that time, Century's accounting acquisitions have included the Waco,
Texas-based E.K. Williams/General Business Services and Kansas City, Missouri-
based Mayer Hoffman McCann, the 29th largest and 34th largest accounting firms
in the nation, respectively.
Through its "tuck-in" acquisition of Gibraltar Real Estate Services
Corporation, Century enhances the capabilities of its Chicago-based
accounting, tax, and consulting services firm, Rootberg Business Services.
Gibraltar, which specializes in the representation of office and industrial
tenants on a national basis, extends Rootberg's services to include services
related to the leasing process, such as renegotiations, relocation,
acquisition and disposition.
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
the Investor Relations Office at 216-447-9000.