The Caldwell Partners (TSX: CWL.TO), a Toronto-based executive search firm with operations in Canada and the US, formed a strategic alliance with CPGROUP LATAM Ltd., expanding its footprint in Latin America. CPGROUP LATAM was founded by the partners who established and led the Latin American operations of CTPartners Executive Search Inc. (NYSE MKT: CTP), which recently ceased operations.

The alliance extends Caldwell Partners’ global presence with 16 partners in seven offices across Latin America and Florida: Bogota, Colombia; Caracas, Venezuela; Lima, Peru; Mexico City, Mexico; São Paulo, Brazil; Santiago de Chile; and Miami, Fla.

Under the affiliation agreement, CPGROUP LATAM will operate exclusively under the Caldwell Partners brand and have access to Caldwell Partners’ proprietary search methodology, processes, training and other intellectual property.

Key terms of the alliance agreement include an initial term of five years and provides for CPGROUP LATAM to pay Caldwell Partners 2.25% of Latin American revenue for the first two years of the agreement and 4.25% in subsequent years. CPGROUP LATAM will have rights to use the Caldwell Partners brand, search process and methodology and related intellectual property. Additionally, should there be a change of control of Caldwell Partners during the first two years of the agreement, CPGROUP LATAM will have the right to terminate the alliance agreement and will be entitled to a dislocation and rebranding fee of $2.0 million.

“We are truly excited to be joining forces with these impressive search teams,” said Caldwell Partners CEO John N. Wallace. “This is a huge step forward for our firm, as we continue to solidify our ability to conduct international and cross-border searches for our clients. The core of our strategy has always been fuelled by a focus on the continuous improvement of our service to our clients and the creation of sustainable value for our shareholders. This has been evident from the time we began our expansion into the United States six years ago, to the planting of our flag in the United Kingdom with our acquisition of Hawksmoor Search, to our entrance into the Latin American market today.”

Caldwell last week reported revenue rose 20% year over year to C$14.8 million (US$11.9 million) in its fiscal third quarter ended May 31. The firm also announced the addition of two other executives from CTPartners.