Company History

The root of the Company is the Alexander Proudfoot business. Mr Alexander ("Alec") Proudfoot founded the Alexander Proudfoot Company, predecessor to Proudfoot Consulting in 1946, in Chicago, USA. He headed the firm until his death in 1968, when the senior management, led by Mr Fred Supper, purchased the company from his widow.

In 1960 Proudfoot Consulting began its expansion out of Chicago, initially within the United States of America, then in partnership with Unibanco in Brazil in the late 1960's.

In the early 1970's, Proudfoot Consulting commenced operations in Europe, opening an office in London. It later moved its European headquarters to Brussels but in the early 1990's this returned to London.

In the mid 1980's, to continue to increase its global reach, Proudfoot Consulting opened an office in Singapore, followed shortly thereafter by an office in Sydney. More offices in the Asia-Pacific region soon followed and by 1988 Proudfoot Consulting had offices in Auckland, Bangkok, Hong Kong, Kuala Lumpur, Taipei and Tokyo.

Jim Lyons succeeded Fred Supper as CEO in 1985 and it was during his tenure that the partners recognised the partnership form of ownership did not lend itself to enabling the business to grow, so in 1987, via a reverse takeover, Proudfoot Consulting listed on the London Stock Exchange. The first Chairman was Lord Stevens of Ludgate with Tom Huhn appointed as Chief Executive.

In 1989 Proudfoot Consulting acquired Philip Crosby Associates, then a publicly traded company on the American Stock Exchange. It had operations around the world, including South Africa which was the impetus for Proudfoot to open an office in Johannesburg in the same year.

This was followed by the acquisition in 1991 of Indevo, a strategy consultancy with its main office in Stockholm. The acquisition of Indevo was not a success and the business was partly sold and the remainder closed in 1993.

The Crosby business declined in the mid 1990s and was closed in 1996 and part of the business sold back to its founder Mr Philip Crosby.

Tom Huhn was replaced as Chief Executive in 1992. For the remainder of the 1990s the business declined under various chief executives who pursued various well-intentioned strategies, none of which proved successful.

Following a Group strategy review in 1999, the non-executive directors, led by the Chairman Dr Rolf Stomberg, recruited a new management team led by Kevin Parry.

The new strategy, that commenced in 2000, aimed to build a group of consulting and professional services offerings each going to market under their own brand with a distinct market offering.

Following the group's demise in the 1990s, there was an equity issue in April 2000 which raised £6.8 million via a placing and open offer in order to provide working capital for the Proudfoot Consulting business.

Proudfoot Japan was sold for £28.5 million in an MBO to its management, led by Mr Kiich Hasegawa in 2000. Financially, the proceeds eliminated the deficit on Group shareholders' funds and provided funds for expansion in the core markets of North America and Europe.

In December 2000, the Group purchased IMR Europe, a well established consultancy with a significant presence in France, for £21.3 million. The business which was a Proudfoot clone was merged into the Proudfoot Consulting business. The business significantly enhanced Proudfoot's capabilities in France and Spain.

The Group changed its name to Management Consulting Group PLC at the beginning of January 2001 so as to avoid confusion between operating brands and the holding company by investors.

In 2001 the Group acquired, for £11 million, Czipin & Partners, a consultancy which undertook similar consulting to Proudfoot Consulting primarily in Germany and Austria. That business was also merged into the Proudfoot Consulting business and significantly enhanced Proudfoot's capabilities in German speaking Europe.

An issue of new shares in May 2002 raised £39 million, net of expenses, which was used to finance the acquisition of Parson Consulting. Parson had a presence in the USA only, offering financial management consultancy. Then expanded globally to Brussels, London, Paris and Sydney. This acquisition initiated the next phase in the Group's development: the formation of a Group with a number of different specialised consultancies.

In September 2006, the Group purchased Ineum Consulting, the former Deloitte consulting business in France. The total consideration was €120 million (£81.9 million), which was satisfied by the payment of €54.0 million (£36.9 million) in cash and the issue of 81.0 million new ordinary shares. Ineum now has offices in Belgium, France, Luxembourg and the Netherlands. The cash element was settled out of existing resources and bank debt. The Ineum business goes to market by industry grouping and the financial management business was merged with the existing Parson business operating in Paris. Since its acquisition, Ineum Consulting has opened offices in Amsterdam, New York and Zurich.

In October 2006, the Group purchased 51% of The Salzer Group, which was then rebranded as Salzer Consulting. Salzer operates in Greater China and throughout the Asia-Pacific region and provides Asia market entry consulting.

In June 2007, the Group commenced with an experienced team, Viaduct Consulting which provides commercial due diligence consulting services to corporate and financial buyers.

In September 2007, the Group purchased CBH Consultants Inc, which was renamed CBH Consulting, for US$6.3 million (£3.1 million). CBH Consulting operates predominantly on the West coast of the United States of America.

In October 2007, the Group completed the acquisition of Kurt Salmon Associates, Inc. The total consideration was US$124.5 million (£61.1 million), which was satisfied by the payment of US$75.0 million (£36.8 million) in cash, the issue of 53,643,103 new ordinary shares and the grant of options over 7,471,466 ordinary shares in exchange for Kurt Salmon Associates options.

In December 2007, CBH Consulting merged with Parson Consulting North America to create a combined financial and performance management consultancy with a broader offering in the US market.

In February 2008 the Chairman, Rolf Stomberg and the Chief Executive, Kevin Parry, left the Group. Alan Barber became Executive Chairman and the heads of Proudfoot, Ineum Consulting and Kurt Salmon Associates joined the Main Board.

In June 2008 the Parson Consulting business was restructured, merged into Ineum Consulting and the brand name discontinued. At the same time Viaduct Consulting was absorbed into Ineum Consulting.

In December 2008 the stake in Salzer Consulting was sold back to the original owners.

In June 2009 Proudfoot changed its name to Alexander Proudfoot.

In March 2010 MCG announced the impending merger between Ineum Consulting and Kurt Salmon Associates.

In May 2010 MCG announced a proposed £25m capital raising and that BlueGem Capital Partners LLP will become an active, long-term cornerstone investor in the business.