Chequers Capital buys French Taxation Services

PRGI, the US-based provider of recovery audit services, has agreed to sell the loss-making French business to a Paris-based private equity firm.

Profit Recovery Group International (PRGI), the Atlanta-based provider of audit recovery services, is selling at a loss its French Taxation Services business to Paris-based private equity firm Chequers Capital.

According to PRGI, the company expects to realise a net loss on the sale of the business of approximately $54m, or a $0.02 reduction in earnings per diluted share from continuing operations which will be recorded in the fourth quarter of 2001.

PRGI put the unit up for sale earlier in the year. The French business had seen its profit plummet from $2.8m in the third quarter 2000 to $700,000 for the same period in 2001. The company reported net earnings from continuing operations in the first nine months of 2001 of $3.6m compared to $11.9m a year earlier.

At that time PRGI also concluded the sale of its logistics management division to technology buyout firm Platinum Equity for an undisclosed amount.

Chequers Capital was unavailable for comment.