London: Management Consulting Group, MCG, has acquired a retail consulting business operating in China.
MCG has acquired Vertical Retail Consulting Limited and Vertical Retail Consulting Hong Kong Limited from Rick Keller and Nathan Burkland for US$2.25 million cash.
MCG says Vertical Retail Consulting operates in mainland China from a base in Shanghai, in Hong Kong and elsewhere in Asia. It provides management consulting services to clients operating in the retail and consumer goods sector. The business serves both well known international brands already active in or in the process of entering the Chinese market, and local retailers which are expanding rapidly in terms of store and brand development. It has been established for approximately three years and has undertaken more than seventy client projects during that time. The business is expected to generate revenues in 2011 of approximately US$4 million and has a strong order book and sales pipeline which extends into 2012.
Rick Keller and Nathan Burkland will continue to work in the business, which will operate as part of the global retail and consumer goods consulting practice of Kurt Salmon. The market for management consulting services in China is expected to continue to grow strongly, in the retail sector in particular.
A further US$1.5 million in cash and 1,350,000 MCG ordinary shares may be payable Keller and Burkland if their business meets performance targets up to 2014.
Nick Stagg, MCG's CEO commented: "China is an important and fast growing market for management consulting services. I am pleased that we have strengthened Kurt Salmon's global position in the retail consulting sector with this acquisition."