(Adds details on deal, results, share price)
March 3 (Reuters) - U.S.-based private equity firm Clayton,
Dubilier & Rice said on Tuesday it will buy British advertising
and marketing company Huntsworth for about 400 million
pounds ($511 million), sending its shares surging 50%.
Shareholders of Huntsworth, which provides marketing and
medical communications services to pharmaceutical companies,
will receive 108 pence per share in cash, according to a
statement on Tuesday. The price represents a 50% premium to the
stock's Monday closing price.
Shares of the company soared 50% in morning trade - touching
the 108 pence mark as of 0807 GMT.
Clayton, Dubilier & Rice (CD&R) said it believes that
Huntsworth's underlying markets, the U.S. and Europe, were
attractive and were underpinned by stable pharma-related trends.
Huntsworth, which owns public relations firm Citigate, in a
separate statement on Tuesday reported strong results for the
year, with pretax profit surging 27% as its communications
division returned to growth.
"Organic revenue growth accelerated over the course of the
year and the acquisitions of Kyne in Marketing and
Creativ-Ceutical in Medical both contributed to 2019
performance," said Paul Taaffe, chief executive of Huntsworth.
The private equity firm said it intends to assist Huntsworth
with future acquisitions.
"Our vision for Huntsworth is shared with management, who
have demonstrated an ability to drive organic growth and execute
accretive add-on acquisitions," said Liam Fitzgerald, adviser to
CD&R funds.
Huntsworth's directors were advised by Rothschild & Co as to
the financial terms of the deal, while BofA Securities were
among financial advisers to CD&R.
($1 = 0.7822 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sriraj
Kalluvila, Bernard Orr)
