Aegis acquires MediaVest Manchester
Aegis Group has acquired an initial 75% of the share capital of MediaVest Manchester.
The remaining 25% of the share capital of MediaVest Manchester is subject to a put and call option arrangement exercisable from 2016.
MediaVest Manchester, which clients include Holland and Barrett, JD Williams, Barratt Developments and Thomas Cook, will become part of Aegis Media’s Carat and iProspect networks, immediately operating under the brand names.
The total consideration for 100% of the share capital of MediaVest Manchester will be up to a maximum of £95 million, subject to satisfaction of earn-out criteria based on profits over the period of 2011 to 2016, according to a statement issued by Aegis. An initial amount of £27 million was paid on completion.
The vendors include Andy Jeal and Dave Lucas, who owned approximately 77% of MediaVest Manchester, together with other employee minority shareholders. Jeal and Lucas, the existing and future managing partners of MediaVest Manchester, earlier re-acquired 19.9% of the share capital of MediaVest Manchester from Starcom MediaVest Group UK (SMG), and relinquished their license to the MediaVest name. SMG had been shareholders in MediaVest Manchester since 1995. The transaction has no impact on SMG’s UK business, MediaVest UK, which is based in London.
The unaudited profit before tax of MediaVest Manchester for the year ending 28 February 2011 was £7.4 million, and the value of the gross assets at that time was £49.6million.
Jerry Buhlmann, chief executive of Aegis said: “Our strategic priority at Aegis Media is to continue to develop and implement best in class digital and media solutions for our clients, and we have made clear that we would be looking at strategic acquisitions that provide scale, infill and innovation. This acquisition does just that, by improving our market share in the UK and further increasing our performance marketing and digital capabilities.”
Rob Horler, CEO, Aegis Media, UK, said: “I am delighted that we have been able to acquire MediaVest (Manchester) Ltd. The acquisition will boost our position in the market but more importantly it is a business that will help accelerate the development of both Carat and iProspect through its market leading regional capabilities and specialist digital expertise. David, Andy and the whole MediaVest Manchester team have built a great business over the past few years and they will be a great addition to our Group.”
Andy Jeal, managing partner of MediaVest (Manchester), added: “We are really excited about becoming part of Aegis Media, and operating as brands with the strength of Carat and iProspect. As part of Aegis Media, we feel perfectly placed to continue to grow our business through planning and implementing market leading, media-neutral solutions for our clients which deliver demonstrable return on investment.”