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 /PRNewswire/ -- Century Business Services, Inc. (Nasdaq: CBIZ - news; ''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.
SOURCE: Century Business Services, Inc. |
