RNS Number:7736N
Hasgrove PLC
12 February 2008
12 February 2008
HASGROVE plc
Extends European Public Affairs network with an acquisition in London
Hasgrove (AIM: HGV, "the Group"), the pan European marketing and communications
group, has acquired Politics International Limited ("Politics International"), a
leading London-based public affairs consultancy, for a consideration expected to
be between £2.7 million to £3 million, subject to earn out.
Politics International will operationally join the Interel group of companies,
Hasgrove's corporate affairs division. The earnings enhancing acquisition is an
important step to establish the Group as one of the leading European corporate
affairs operations. The Interel group of companies was enhanced last year by
the acquisition of the Brussels-based consultancy, Cabinet Stewart and
Berlin-based consultancy, Claudia Conrad.
Politics International, which was established 16 years ago, specialises in
providing high-level strategic advice to blue chip clients in the public,
private and voluntary sectors. In the year to 30 June 2007, its underlying
profit before tax was £373,000. The Net Assets at 30 June 2007 were £454,000.
The consideration consists of an initial payment of £1.8 million, of which £1.2
million is payable in cash and the balance satisfied by the issue of 485,830 New
Ordinary Shares at 123.5p. Accordingly, application has been made for 485,830
New Ordinary Shares to be admitted to trading on AIM on 15 February 2008. In
addition there will be further deferred consideration based upon 50% of
operating profit generated in the period to 31 December 2011. These further
payments will be made with a mixture of loan notes and the issue of new ordinary
shares with a minimum of 92.5% of the further consideration being paid in loan
notes. The upper end of the estimated deferred consideration will be payable
provided that Politics International generates operating profits of £2.4 million
during the earn-out period. The initial cash consideration will be paid from the
group's bank facilities.
Joining the Interel group of companies is a natural step in the development of
Politics International. It will now be able to offer its clients integrated
services throughout Europe, particularly in the fast evolving EU Public Affairs
market where Interel is one of the leading players. Politics International will
also have access to a greater depth of resource within Hasgrove, particularly in
related communications disciplines in the emerging digital sphere, which are
bringing a new dimension to public affairs.
The founding director Andrew Dunlop and the board of directors are remaining
with the business.
Rod Hyde, Hasgrove Chief Executive commented:
"This is another important strategic step in the development of our pan European
corporate affairs capabilities. The Interel group of companies now has a
presence in the major public affairs markets of Brussels, London and Washington
DC. In addition to the acquisition being earning enhancing, given Politics
International's culture and operating base, we expect many operational synergies
also to develop."
Enquiries:
Hasgrove Group
Rod Hyde, Chief Executive 0161 817 4200
Paul Sanders, Group Finance Director
College Hill
Adrian Duffield/Ben Way 020 7457 2020
KBC Peel Hunt
Capel Irwin 020 7418 8900
Richard Newman
Note to editors
Hasgrove, incorporated on 1 October 2004, is the holding company for a group of
profitable and cash generative companies which provide communication services in
public relations, public affairs, graphic design, advertising and online
marketing.
Hasgrove was established to capitalise on the evolving world of communications.
The Group provides services which encompass multi-channel, cross-disciplinary
and cross-border activity. This is being achieved by a combination of organic
development and acquisition within the fragmented marketing communications
sector.
There are now more than 350 personnel in the Group, serving a broad client base
of more than 325 clients, working in a number of well established, profitable
and strongly cash generative operating businesses:
* Amaze provides clients with a wide range of marketing solutions across all
digital platforms, including the delivery of web technology solutions.
* Connectpoint specialises in advertising, public relations, public affairs
and digital services.
* The Chase is a leading UK graphic design agency.
* Interel. is a leading European Corporate Affairs consultancy focusing on
public affairs and issues management. Interel has 120 professionals in its
offices in Brussels, Berlin, Paris, Prague and Washington DC and has a well
established network of partners in all other major cities in Europe.
* Pavilion Communication Services is a digital marketing agency
* Odyssey Interactive is a supplier of intranet software solutions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQSFDFWFSASEEE
|