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13 Jul 2011 07:00
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Chime Communications PLC
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("Chime" or the "Company")
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Acquisition of Reynolds-MacKenzie Limited
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Chime Communications PLC, a leading marketing services group, is delighted to announce it has acquired 100% of the share capital of Reynolds-MacKenzie Limited ('RML') for an initial consideration of Β£2.6 million. The initial consideration comprises Β£1.6 million in cash and the issue of 188,894 new ordinary shares in Chime, and Β£0.5 million in cash representing working capital of RML at acquisition that is surplus to requirements after joining the group. Chime is acquiring the business from RML's two founding Directors; Alison MacKenzie and Eva Reynolds. Following completion, Alison and Eva will continue to develop RML as part of Chime's healthcare division, OPEN Health, which was launched in January 2011.
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RML specialises in healthcare communications for prescription medicines and its clients include: Bristol-Myers Squibb, Roche and Pfizer. RML reported revenue of Β£1.5 million for the year ended 31 December 2010 and operating profit of Β£759,000. The gross assets of RML were Β£1,215,000 as at 31 December 2010.
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Further tranches of deferred contingent consideration totalling a maximum of Β£6.9 million, may be payable depending upon the future trading performance of RML. At Chime's option up to 25% of the deferred consideration may be satisfied through the issue of new Chime ordinary shares.
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Chime expects the acquisition of RML to be immediately earnings enhancing.
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-Ends-
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Enquiries
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Lord Bell, Chairman 020 7861 8515
Chime Communications plc
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Chris Satterthwaite, Chief Executive 020 7861 8515
Chime Communications plc
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James Henderson / Victoria Geoghegan / Emma Kent 020 7861 3232
Pelham Bell Pottinger
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Notes to Editors
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The Chime Group helps clients create, manage, monitor and market their businesses, brands and reputation both in the UK and internationally.
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Chime is the holding company for the UK's leading public relations group, Bell Pottinger; one of the fastest growing advertising and marketing services groups in the UK that includes VCCP, Teamspirit and OPEN Health; the UK's number one sports marketing group that includes Fast Track and Essentially Group; and the leading research group which includes Facts International and Opinion Leader Research.
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For more information please go to www.chime.plc.uk
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