"Ideas pull the trigger, but instinct loads the gun."
Accenture to Acquire Kurt Salmon
- Transaction Value $165 Million
- Transaction Value/LTM Revenue 1.8x
- Global professional services giant Accenture (NYSE:ACN) announced yesterday that it entered into a agreement to acquire retail strategy consulting firm Kurt Salmon from parent company Management Consulting Group PLC (LSE:MMC), a London-based professional services company.
- Terms of the transaction were disclosed in a London Stock Exchange filing submitted by Management Consulting Group.
- Following the completion of the transaction, Kurt Salmon’s more than 260 employees are expected to join the Accenture Strategy retail practice.
In World Of Giants, Niche Skills Stand Out
- A Big Boost for Retail Consulting: Accenture’s integration of Kurt Salmon bolsters Accenture Strategy’s retail practice, gaining both talent and a significant customer base. This is the latest in a pattern of retail consulting acquisitions for Accenture, which recently acquired German-based dgroup, focused on digital consulting, and Axia Limited, a broader consulting services firm.
- Expanding Capabilities to Enable Transitions: Retail consulting is especially important today as retailers confront disruption from digital ecommerce. Many retailers are turning to consulting providers to make their operations more efficient and competitive — and large firms like Accenture are positioning themselves to fill that need.
- The End of an Era: Kurt Salmon Associates was founded in 1935. The company became a prestigious and recognized brand in management consulting, merging with Ineum Consulting in 2011 to become Kurt Salmon. But the company has recently struggled with market pressure, its headcount declining from 1,500 to 1,000 by 2015 when Management Consulting Group sold everything but the retail and consumer goods advisory unit to French consulting firm Solucom (now Wavestone). Though Accenture has not yet finalized branding decisions, this may be the end of the Kurt Salmon brand.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.