Tags: H&R | Block | Sell | Consulting

H&R Block to Sell Consulting Unit for $610 Million

Tuesday, 23 Aug 2011 01:26 PM

H&R Block said it signed a letter of intent to sell its consulting unit to McGladrey & Pullen for about $610 million, as the top U.S. tax preparer focuses on its core business.

H&R Block will finance about $65 million of the deal value as it looks to jettison the underperforming RSM McGladrey unit.

In June, H&R Block's new Chief Executive William Cobb told analysts that RSM's falling profit and revenue were a drag on the company's earnings, and that the unit and its troubles were on his "radar screen."

H&R Block bought RSM McGladrey in 1999 to diversify beyond filing tax returns.

However, after a successful proxy battle by hedge fund manager Richard Breeden in 2007, the company began to cut non-core operations, such as subprime lending and financial advisory, to return to its roots.

H&R Block said it expects to record a non-cash charge of about $53 million, or 17 cents a share, in the first quarter related to the sale and the closure of RSM's operations that are not part of the deal.

© 2015 Thomson/Reuters. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved