HNT.L Regulatory News (HNT)

19 Aug 2009 07:00



19 August 2009

Huntsworth plc

Acquisition of Sund Kommunikation i Malmö AB 

Huntsworth PLC ("Huntsworth"), the international public relations and healthcare communications group, announces today that its wholly owned Swedish subsidiary Citigate & Trimedia Norden AB has entered into an agreement to acquire the entire issued share capital of Sund Kommunikation i Malmö AB ("Sund"), a leading public relations company operating in Sweden. The transaction is expected to complete later today. This acquisition will become part of the Trimedia group, expanding the Trimedia network and adding to the existing Trimedia/Citigate offering in Sweden.

Sund is one of Sweden's leading and fastest growing public relations agencies. The agency offers a range of PR services in Corporate Communications, Financial Communications, Marketing PR and Public Affairs. The agency has been ranked number 7 in this year's Best Consultants in Sweden by Veckans Affarer, has won the prestigious national Spinn award in Marketing PR and has been ranked a leading agency in several Financial Communications league tables for the past three years. 

Sund has been built up by Leif Andersson, Carl-Johan Wachtmeister and Peter Erikson all of whom will continue to develop the business, with Peter Erikson moving to the role of CEO of Trimedia Sweden. Sund will be integrated immediately with Trimedia and Citigate in Sweden and Niklas Alm, the current Trimedia CEO, will become head of Financial Communication in the combined agency. The Sund Board will report directly to Michael Murphy, Group CEO of Trimedia International. 

Sund has been acquired from companies owned by Leif Andersson, Carl-Johan Wachtmeister, and Peter Erikson. The initial consideration is SEK18.0 million (£1.5 million), paid in cash. Deferred consideration may be payable, with an interim payment based on the profits for the twelve months to 30 June 2010 and a final payment based on the profits for the three years to 31 December 2012.

Payments of deferred consideration are conditional, inter alia, upon profit growth and will be satisfied in cash. By way of illustration, the maximum total consideration of approximately SEK145.0 million (£12.3 million) would require profit growth of over 65% per annum over the 2008 base. 

For the year ended 31 December 2008 Sund had revenues of SEK44.2 million (£3.8 million) and profit before tax of SEK2.9 million (£0.2 million). The gross assets at 31 December 2008 were SEK12.3 million (£1.0 million). 

Michael Murphy, Chief Executive of Trimedia International, commented:

"Scandinavia is strategically important for any European corporate communications network and we have been exploring opportunities to expand our presence in Sweden for some time. We have known Sund for a number of years and have admired how they have grown and developed their business. Sund is a good fit with Trimedia from a strategic, geographic and cultural perspective and I'm confident that together we can further develop our business in Northern Europe and internationally."

Leif Andersson, Chairman of Sund, said: "Our long term objective is to be the leading PR agency in Sweden. Trimedia has been awarded best European PR agency and best agency to work for. We strive to achieve the same focus on excellent quality for clients and employees. To be a part of Trimedia provides us with a huge opportunity to achieve to our goals."

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