US Acquisition
Released : 18/11/2014 07:00
RNS Number : 2699X
M&C Saatchi PLC
17 November 2014
M&C SAATCHI PLC
18 November 2014
Minority investment in Shepardson Stern + Kaminsky
M&C Saatchi, the global marketing services business, announces that it has agreed to acquire a 33% stake in Shepardson Stern + Kaminsky LLC ("SS+K"), a New York creative agency with clients including Wells Fargo, HBO and Starbucks. The Agency won five Cannes Lions in 2014 and created the most-watched video of the Obama presidential campaign.
The estimated consideration for the initial 33% stake in SS+K is USD8.0m, based upon a PBT multiple of 8 applied to 2014 and 2015 performance. The members of SS+K will be able to elect that M&C Saatchi purchase 50% of the remaining equity from 2016 and the remaining balance from 2018 for considerations based on future profits.
SS+K had unaudited gross assets of USD13.4m as at 30 September 2014 and an unaudited operating profit of USD1.8m for the twelve months ended 30 September 2014. There will be no change to key management at SS+K as a result of the transaction.
Contacts:
M&C Saatchi +44 (0)20-7543-4500
David Kershaw
Tulchan Communications +44 (0)20-7353-4200
Lucy Legh
Numis Securities +44 (0)20-7260-1000
Nick Westlake, NOMAD
Charles Farquhar, Corporate Broking
About M&C Saatchi
M&C Saatchi, founded in 1995, is a global marketing services business working across a wide variety of industry sectors. We are a federation of entrepreneurs, built through start-ups and owner managers with 25 offices in 19 countries all united by our commitment to our philosophy: Brutal Simplicity of Thought.
About SS+K
SS+K, founded by Rob Shepardson, Lenny Stern, and Mark Kaminsky, in 1993, is a New York based Marketing and Communications agency. They employ 60 people and work with such clients as HBO, Starbucks and Wells Fargo.
This information is provided by RNS
The company news service from the London Stock Exchange
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