MediaVest in major deal with Aegis
QUOTED media group Aegis has taken a majority stake in media planning and buying agency MediaVest, which has a major office in Leeds, in a deal which values the business at £95m.
Aegis has bought 75% of the shares and has an option to acquire the remaining stake after 2016.
It has paid an initial £27m but said 100% of the shares would be worth up to £95m subject to certain profit-based targets over the next five years.
MediaVest was founded and controlled by Andy Jeal and David Lucas who own 77% of the company along with some employee minority shareholders. In its statement Aegis said Mr Lucas and Mr Jeal had also re-acquired 19.9% held by Starcom Mediavest Group since 1995 and relinquished their license to the MediaVest name.
In the year to February 28 the business, which has around 200 staff, recorded a pre-tax profit of £7.4m and had gross assets of £49.6m.
Its clients include Holland and Barrett, JD Williams, Barratt Developments and Thomas Cook and as well as an office in Leeds it has bases in Manchester, Newcastle and Edinburgh. It will become part of Aegis Media’s Carat and iProspect businesses, operating under their brands.
Managing partner Mr Jeal said: “We are really excited about becoming part of Aegis Media, and operating as brands with the strength of Carat and iProspect. As part of Aegis Media, we feel perfectly placed to continue to grow our business through planning and implementing market leading, media-neutral solutions for our clients which deliver demonstrable return on investment.”
Aegis Media’s chief executive Rob Horler said: “I am delighted that we have been able to acquire MediaVest (Manchester) Ltd. The acquisition will boost our position in the market but more importantly it is a business that will help accelerate the development of both Carat and iProspect through its market leading regional capabilities and specialist digital expertise.
“David, Andy and the whole MediaVest Manchester team have built a great business over the past few years and they will be a great addition to our group.”
The corporate team at the Manchester office of accountancy firm BDO advised MediaVest on the sale.
