Abbott Mead Vickers has agreed to buy Redwood Publishing Ltd, for an initial cash payment of £2.85m. Four additional payments will follow dependent on performance. In addition, 537,879 new AMV shares are being placed at 660p per piece to raise £3.35m. The balance will be used by Redwood as working capital. Redwood’s pre-tax profits for the first five months of 1994 are £300,000.
Redwood publishes, among other titles, the magazines for Marks & Spencer, American Express and Woolworths. New business wins this year total an annualised £6m, from BSkyB, The Automobile Association, Abbey National, English Heritage and Volvo.
David Abbott, chairman of AMV, commented, “Customer magazines are increasingly being seen as a key marketing tool. Redwood…is expected to make a significant and increasing contribution to the group’s business.”
Redwood Publishing: 071 331 8000
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