Monday, Resources Connection Inc. (RECN) announced the completion of the acquisition of the business of strategic communications firm Sitrick And Co Inc. and corporate advisory and restructuring firm Brincko Associates Inc. The acquisitions were made for aggregate initial consideration of approximately $44.7 million, comprising $28.6 million in cash and about 822 thousand shares of restricted stock, plus an earn-out based on the achievement of certain adjusted earnings before interest, income taxes, depreciation and amortization levels over a period of four years from the date of closing.
Resources Global Professionals, the operating subsidiary of Resources Connection, Inc., is a multinational professional services firm that helps business leaders execute internal initiatives. The California based Resources Global has served 84 of the Fortune 100 companies.
The company also announced the formation of a new Resources subsidiary, called Sitrick Brincko Group, LLC. Michael Sitrick is the Chairman and CEO, and John Brincko is President and COO of the new subsidiary. Michael Sitrick and John Brincko entered into a 54-month employment contract with the Resources subsidiary.
The company noted that the principal acquisition agreement provides that the employees of the new subsidiary would share in up to 20% of the earn-out based upon the achievement of certain growth targets.
RECN is currently being traded at $20.27 up $0.64 or 3.26% on a volume of 0.20 million shares on the Nasdaq.
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