Management Consulting Group PLC on Wednesday said it has agreed to sell the US healthcare consulting arm of its Kurt Salmon business to ECG Management Consultants, a US-based healthcare consultancy.
Management Consulting said it will get USD12.0 million in cash on completion of the sale, with a further USD1.0 million to be paid based on the Kurt Salmon US healthcare unit meeting performance targets. However, it will take a GBP15.0 million one-off hit on the sale due to a goodwill writedown on the balance sheet of the division being sold.
Kurt Salmon US healthcare provides management consulting services to major hospitals groups and healthcare organisation in the US. It made GBP700,000 in pretax profit in 2015.
The remainder of the Kurt Salmon business which Management Consulting will retain comprises its international practice, focused on retail and consumer goods clients.
"The sale of the healthcare practice, which follows the sale of the French and related operations of Kurt Salmon in January 2016, will allow MCG to focus on the Kurt Salmon business serving the retail and consumer goods sector, where it is a market leader, as well as the ongoing recovery in Alexander Proudfoot," said Nick Stagg, Management Consulting's chief executive.
Shares in Management Consulting PLC were up 1.5% to 16.5 pence Tuesday.
For further information see www.lse.co.uk