Goldman to Take 15% Stake in Ad Company MDC Partners
February 15 2017 - 10:34AM
Dow Jones News
By Anne Steele
MDC Partners Inc. will get a $95 million shot in the arm from
Goldman Sachs, giving the investment bank a 15% stake in the
advertising company.
The deal values MDC shares at $10, a 48% premium to Tuesday's
closing price. The stock jumped 22% in recent trading Wednesday to
$8.25.
Goldman will purchase nonvoting convertible preference shares in
MDC, and Bradley Gross, a managing director in the merchant banking
division of Goldman Sachs, will join MDC's board.
The company, which owns well-known ad agencies including Crispin
Porter + Bogusky and 72andSunny, has been struggling with
lackluster performance. In early November the company said it hired
investment banking adviser LionTree to evaluate its "financial and
capital structure strategy."
MDC said Wednesday it expects to use the proceeds from the
investment to pay down existing debt and for general corporate
purposes. The company said its review of its financial and capital
structure is concluded.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
February 15, 2017 10:19 ET (15:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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