M&C SAATCHI PLC
28 November 2013
Sale of 75.1% of Walker Media to Publicis Groupe
M&C Saatchi, the global marketing services business, is pleased to announce that it has agreed to sell a 75.1% stake in Walker Media to Publicis Groupe. Walker Media will form part of a new global network which will benefit M&C Saatchi's worldwide client base.
Walker Media is one of the leading media agencies in the UK and will become part of Publicis Groupe's ZenithOptimedia Group, and will be a key cornerstone of a new global media network to be launched in 2014. M&C Saatchi will retain a 24.9% stake in Walker Media and will have the right to appoint a minority of directors to the board, which initially will be David Kershaw, CEO of M&C Saatchi plc, and Jamie Hewitt, Group Finance Director of M&C Saatchi plc.
The consideration for the 75.1% stake is £36m, which equates to a valuation for the whole of Walker media of £48m, and will be payable in cash on completion of the transaction, expected on 27 November 2013. Walker Media had gross assets of £49.1m as at 31 December 2012 and operating profit of £5.2m for the 12 months ended 31 December 2012.
A majority of the cash proceeds will be used to return to shareholders. A further announcement will be made in due course on the method and timing of how this cash will be returned. The remainder of the cash proceeds will be used to fund future investments consistent with M&C Saatchi's strategy, purchase minority put options, and for general working capital purposes.
David Kershaw said: "This new network will be of great value to our worldwide client base. Walker Media will benefit from the geographic reach and scale opportunities within ZenithOptimedia and Publicis, whilst importantly retaining the integrity of the Walker Media brand."
Contacts:
M&C Saatchi +44 (0)20-7543-4500
David Kershaw
Tulchan Communications +44 (0)20-7353-4200
Lucy Legh
Susanna Voyle
Clarity +44 (0)20-3402-4904
Lead Financial Adviser
Marcus Anselm
Numis Securities +44 (0)20-7260-1000
Broker, Nomad and Joint Financial Adviser
Lorna Tilbian
Nick Westlake
Charles Farquhar
About M&C Saatchi
M&C Saatchi is a global marketing services business working across a wide variety of industry sectors. We are a federation of entrepreneurs, built through start-ups and owner managers with 26 offices in 18 countries all united by our commitment to our philosophy: Brutal Simplicity of Thought.
About Walker Media
Walker Media was formed in 1998 by Christine Walker and Phil Georgiadis with M&C Saatchi, and today counts over 130 employees. It is one of the leading media agencies in the UK, retaining a place in the top 10 UK media agency ranking, and commanding a list of long-standing blue chip clients, including Marks & Spencer, Dixons Group, KFC, Halfords and Weetabix.
