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