Creston Unlimited, the company behind TMW, The Real Adventure and EMO, has struck a £75.8m sell-off to an Isle of Man firm, in a deal which is likely to see agency bosses, including TMW co-founder Richard Marshall and Creston chief Tim Bonnet, fill their boots.
DBay Advisors has been a major shareholder of the group since 2014, but increased its stake to 28% in April. It has created a company called RedWhiteBlue Digital Marketing Services Holdings to seal the deal.
Under the terms of the acquisition, which needs shareholder approval, Creston shareholders will be entitled to 126.42p in cash for each Creston share, comprising 125p in cash from DBay and 1.42p from an interim dividend paid by Creston in December.
Creston group chief executive Barrie Brien said: “As the business and our clients requirements continue to develop, and in light of uncertain market conditions, the board of Creston has given careful thought about how best it pursues this strategy to deliver value for shareholders, clients and staff.”
The announcement coincided with Creston’s half-year results for the six months ending September 30, in which it reported a 4% fall in like-for-like revenue to £38.7m, although headline profits were up 13% to £4.5m.
Creston cited “a broadly flat performance, impacted by post-Brexit economic uncertainty”.
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