Century Business Services, Inc., Announces the
Acquisition of Six Accounting Services Firms, Including Three Tuck-In
Acquisitions, Adding More than $20 Million in Annualized Revenue
Century Also Closes Seven Previously Announced Acquisitions
CLEVELAND, Aug. 26 /PRNewswire/ -- Century Business Services, Inc. (Nasdaq: CBIZ - news; ''Century''), the nation's
fastest emerging outsourced business services company, today announced the acquisition of six accounting services firms,
including three tuck-in acquisitions. The acquisitions include the accounting, tax and business consulting firms of Parks Palmer
Turner & Yemenidjian, based in Los Angeles, California; Weiss, Yess & Co., P.C., located in St. Louis, Missouri; and Baril
& Smith, Inc., which operates in Woburn (Boston), Massachusetts; and the ''tuck-in'' acquisitions of Mendelson &
Mendelson, P.C., based in Bethesda, Maryland; Belleville, Kansas-based Gottschalk & Company, Chartered; and Baltimore,
Maryland-based Preisinger & Associates.
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 $420 million. The acquisitions, which are expected to close early in
the fourth quarter, are subject to further due diligence and definitive agreements.
Commenting on the acquisitions, Michael G. DeGroote, Chairman and Chief Executive Officer of Century, stated, ''The
acquisitions announced today demonstrate our dedication to expanding the services Century offers in our existing
marketplaces, such as St. Louis, Los Angeles, Boston, and Baltimore, while growing our presence in several new cities. We
are very pleased to welcome each of these firms into the Century network.''
One of the 20 largest accounting and business consulting firms in Los Angeles, Parks Palmer Turner & Yemenidjian, marks
Century's second accounting, tax, and consulting acquisition in the Los Angeles metropolitan area. In addition to providing tax
and business consulting services to a wide range of clients, Parks Palmer specializes in the real estate, manufacturing, and
entertainment industries. Built around a tradition of service, technical expertise, and creative thinking, Parks Palmer offers
clients a vast array of services, including accounting, tax, business management, collection, management advisory, litigation
support, and acquisition assistance services.
''We are looking forward to joining Century Business Services for several reasons,'' commented James R. Parks, managing
partner of Parks Palmer Turner & Yemenidjian. ''Not only will our clients gain access to a wider variety of services and our
employees be able to participate in the growth of a much larger organization, but as a firm, we expect to gain exposure to a
substantially broader client base.''
Weiss, Yess & Co., P.C., represents Century's first accounting, tax, and consulting services acquisition in the St. Louis
metropolitan area. Since its founding in 1991, Weiss, Yess & Company has grown to become the 19th largest accounting firm
and the 23rd largest employee benefits firm in St. Louis, according to the St. Louis Business Journal. In addition to its core
accounting and tax services, Weiss, Yess has developed a broad range of specialized services, including business valuation,
human resource consulting, personal financial planning, state and local tax planning, and healthcare consulting services.
Art Weiss, a founding shareholder of Weiss, Yess, commented, ''Our merger with Century will allow us to immediately fulfill
an important aspect of our corporate vision. We will now be able to provide our clients with a broader range of services on a
national basis.''
Baril & Smith, Inc., which operates in Woburn (Boston), Massachusetts, offers accounting, tax, and consulting services to a
diverse group of business clients. Through its broad array of accounting, valuation, tax preparation and analysis services, Baril
& Smith has become a premier provider of professional, personalized service to small and medium-sized business clients in
New England.
''Our objective of providing high quality services to our clients is vastly enhanced by our affiliation with Century Business
Services,'' stated George Smith, President of Baril & Smith. ''Upon joining Century, we will add substantial resources to assist
our existing clients in achieving their goals and significantly expand our base of potential clients.''
Century's accounting, tax, and consulting ''tuck-in'' acquisitions include Bethesda, Maryland-based Mendelson & Mendelson,
P.C.; Belleville, Kansas- based, Gottschalk & Company, Chartered; and Baltimore, Maryland-based Preisinger &
Associates, P.A. The ''tuck-in'' acquisitions enhance Century's existing presence in these markets.
Additionally, the Company announced the closing of seven previously announced acquisitions, including five ''tuck-in''
acquisitions: Rosemont & Associates, a property tax management and consulting firm operating in Dallas, Texas; Los Angeles
and Santa Clarita, California; Memphis, Tennessee; Orlando, Florida; and Seattle, Washington; Bertram, Vallez, Kaplan and
Talbot, Ltd., a Minneapolis-based accounting, tax and consulting firm; Atlanta-based Sloan & Letson, an accounting service
firm that will be ''tucked-in'' to Smith & Radigan, a Century Business Services accounting services firm also located in Atlanta,
Georgia; Highwood Associates, Inc., a Kildeer (Chicago), Illinois- based group health brokerage firm which will be integrated
with Century's existing benefits services operation in Chicago; and the ''tuck-in'' acquisitions of three Century Small Business
Solutions franchisees in Baltimore, Maryland; Beltsville, Maryland; and Fairfax, Virginia.
Separately, Century announced the expansion of its revolving credit facility from $50 million to $100 million. The five-year
facility fortifies Century's ability to implement its highly active acquisition program.
''The doubling of the capacity of our revolving credit facility equips Century to continue our aggressive acquisition program,''
stated Mr. DeGroote. ''It is through this expansion, coupled with internal growth, that we seek to achieve long-term success in
the business outsourcing services industry.''
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 120
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 our Investor Relations Office at 216-447-9000.
SOURCE: Century Business Services, Inc. |
