Superior Group Acquires EBUS and SVCPH for $26.9 Million Plus Earn-Out

What happened

Superior Group of Companies acquired SVCPH's outstanding shares and substantially all of EBUS's assets, adding a call center and business process outsourcing business to its Contact Centers segment. The purchase involved approximately $26.9 million in cash, subject to adjustments, plus a possible revenue-based earn-out of up to approximately $6.4 million over two years. Superior used borrowings under its syndicated credit facility to fund it.

Confirmed

Global impact / market context

The acquisition gives Superior a larger Contact Centers business, which may add revenue from call-center and business-process outsourcing services. The cash payment and borrowed funding also increase the importance of the acquired operations generating enough income to cover the purchase cost and financing obligations.

Analyst inference

The stated earn-out depends on revenue, so part of the final payment is tied to how the acquired business performs over two years. Because the purchase was funded with borrowed money, operating results and financing costs may shape its effect on Superior's finances.

Analyst inference

What to watch

1. Watch for reported revenue from the acquired call center and outsourcing operations, since the earn-out can reach approximately $6.4 million if revenue conditions are met over two years. Analyst inference
2. Look for subsequent disclosures on the final cash payment, which is subject to adjustments, and any earn-out payments tied to revenue during the two-year period. Analyst inference
3. Track Superior's borrowing and financing costs after the purchase, because it used its syndicated credit facility, a shared bank lending arrangement, to fund the acquisition. Analyst inference

Evidence

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