Century Business Services, Inc., Closes Six Acquisitions Plus Two Tuck-In Acquisitions Adding More Than $25 Million in Annualized Revenue
CLEVELAND, Jan. 4 /PRNewswire/ -- Century Business Services, Inc. (Nasdaq: CBIZ - news; ''Century''), the nation's fastest emerging out-sourced business services company, today announced that it has completed the acquisition of six business services companies plus two tuck-in companies. The acquisitions include the accounting, advisory and tax companies of: Shilling & Kenyon, Inc., and its related business, SK Consulting, based in San Jose, California; Parks Palmer Turner & Yemenidjian, of Los Angeles, California; Saltzer Lassar Piccinnini & Company, of New York City; Jones Hayward & Lenzi, of Bala Cynwyd, Pennsylvania (Philadelphia); Baril & Smith, based in Woburn, Massachusetts (Boston); and AVTAX, Inc., a valuation firm headquartered in Dallas, Texas. Century's tuck-in acquisitions include the accounting, advisory and tax company Westervelt, Carson & Miller, Chartered, of Parsons, Kansas, and the information technology firm, Automation Experts, of Cleveland, Ohio. The acquisition of these companies adds more than $25 million in historical revenue to Century's annualized revenue, bringing the Company's acquired annualized revenue in the fourth quarter to more than $80 million on a historical basis. All of the aforementioned acquisitions closed in 1998.
Commenting on the acquisitions, Michael G. DeGroote, Century's President and Chief Executive Officer, stated, ''Including the closings announced today, Century closed 42 acquisitions plus 27 tuck-ins in 1998, with a total of more than $255 million in historical revenue. This alone is more than double our reported revenue for all of 1997. As we move into 1999 with a heavier emphasis on internal growth and cross-serving, we anticipate continued strong growth in revenue and earnings.''
San Jose, California-based Shilling & Kenyon, Inc., founded in 1982, has become one of the largest independent accounting firms in the Silicon Valley. With forecasting and budgeting assistance, tax strategizing, succession planning, litigation support, negotiations and computer control review among its business services offerings, Shilling & Kenyon has been a key partner and growth agent for many of its clients. Its affiliate, SK Consulting, supports clients through services such as information system design, upgrades, implementation and support, human resources assessment, employee relations management, hiring and retention services, marketing assessment and planning, and organizational development analysis and planning.
''Joining Century is a crucial developmental step for Shilling & Kenyon,'' commented Cindy Kenyon, founding partner of Shilling & Kenyon. ''We always strive to remain on the cutting edge of our industry, and adding the vast resources that Century has to offer puts us right at the forefront.''
Century is bolstering its services network in Los Angeles, California, with the acquisition of Parks Palmer Turner & Yemenidjian, one of the region's 20 largest accounting and business consulting companies. Specializing in the real estate, manufacturing, and entertainment industries, Parks Palmer has thrived under an operating philosophy that values superior service, technical expertise, and creative thinking. In addition to accounting, tax and advisory services, Parks Palmer provides collection, litigation support, and acquisition assistance services.
''Excellent synergies exist between our company and Century,'' stated James Parks, managing partner of Parks Palmer Turner & Yemenidjian. ''In the coming months, we expect these synergies to make a positive difference that's noticeable to our clients and to our bottom line.''
With offices in Atlanta, Chicago, Dallas, Denver, Detroit, Houston, Tulsa, and Sacramento, Dallas-based AVTAX, Inc. augments Century's business services offerings in metropolitan areas across the United States. Since its founding in 1981, AVTAX has provided a variety of clients and industries with services ranging from property and asset inspection and valuation to appeals and tax budgeting. AVTAX's exceptional ad valorem (value-based) tax consulting and compliance services have propelled the firm to national recognition in the valuation services arena.
Commenting on the acquisition, principal and co-founder of AVTAX Paul Hawn stated, ''With offices in eight cities across the country, we can offer a significant number of Century clients cost-saving benefits in our area of expertise. Becoming a part of the Century network makes it much easier for us to market our services to the clients that need them.''
The acquisition of Saltzer Lassar Piccinnini & Company (SLP), a highly reputable accounting, tax and consulting company, marks an important first step in Century's establishment of a service network in New York City. Established in 1940, SLP has built a loyal client base of small and mid-sized companies, chiefly through its exceptional accessibility and attentiveness to customer needs. SLP's service offering extends beyond traditional accounting services to include trust and estate planning, advanced information systems, and executive compensation services, as well as management consulting for ISO 9000 requirements.
''Our own experience has shown us the positive effect that expanded service offerings can have on our company as well as on our clients' business,'' commented Jeffrey Saltzer, senior managing director of SLP. ''Taking this expansion forward with Century is the next logical step in not only meeting but exceeding our customers' expectations.''
Jones Hayward & Lenzi, of Bala Cynwyd, Pennsylvania, strengthens the Company's market position in Philadelphia, where Century has already established a wide array of business services offerings. Established in 1982, Jones Hayward & Lenzi offers litigation support, and consulting services in addition to accounting and tax services. With clients located primarily in Eastern Pennsylvania and Southern New Jersey, Jones Hayward & Lenzi serves a variety of industries, including manufacturing, wholesale, retail, professional services, real estate and government.
''As accountants, we have a unique perspective of a client's business,'' commented Dan Jones, managing director of Jones Hayward & Lenzi. ''Clients are recognizing the value of this and are now demanding more from their accounting services provider. Century allows us to offer a greater array of services to our clients.''
Fortifying Century's existing accounting and valuation services offerings in Boston, Woburn, Massachusetts-based accounting, advisory and tax company Baril & Smith offers tax planning and preparation, business consulting, and valuation and analysis services. Baril & Smith's professional staff serves the divergent needs of clients from a wide array of industries, including manufacturing, construction, distribution, retail, real estate, transportation and professional services.
George Smith, President of Baril & Smith, stated, ''We are looking forward to enhancing our service offerings to our clients with the substantial resources we gain from Century.''
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 160 Company offices in 35 states, as well as through its subsidiary, Century Small Business Solutions, a franchisor of accounting services with 650 franchisee offices in 47 states.
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 possibility 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.
SOURCE: Century Business Services, Inc. |
