17 July 2018 – investment
Empresaria has announced the acquisition of a 60% interest in Grupo Solimano, an established provider of outsourced and temporary staffing services in Peru. This strategic investment strengthens the company’s presence in the Latin American market as it has existing operations in Chile and Mexico. The total consideration is expected to be approximately £2.1m, made up of an initial cash payment of £1.35m, a deferred payment of approximately £0.55m due to be paid by September 2018 and a contingent amount of £0.2m dependent on final results for the year ended 31 December 2018. In the year ended 31 December 2017, Grupo Solimano generated revenue of £14.9m. The investment is funded by operating cash flows and is expected to be earnings neutral in the current financial year then earnings enhancing in the next financial year. The shares are somewhat out of favour and we keep our BUY rating.