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London’s Financial Dynamics Joins Cordiant Clearance

News, 20 May 2003

The great Cordiant Communications asset clearance sale continues apace, with London public relations firm Financial Dynamics the latest to go.

The business is set for a management buyout led by ceo Charles Watson later this week, with partners in the firm expected to take a 10% stake. Private equity group Advent International is also supporting the bid.

The price is yet to be confirmed, but expected to be in the region of £25 million ($41m; €35m), just five times FD’s annual pre-tax profits of £5m. There has been speculation, however, that cash-strapped Cordiant may accept even less.

• Separately, Cordiant has completed its first major asset sale since deciding to offload non-core units with the disposal of Australian agency George Patterson Bates.

As predicted [WAMN: 05-Feb-03], investment group Pacific Equity Partners is taking a 70% stake in the agency in a $60m deal. Cordiant retains 20%, while management will buy the remaining 10%.

Data sourced from: BrandRepublic (UK); additional content by WARC staff