Huntsworth swallows up The Creative Engagement Group
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Healthcare communications and public relations group Huntsworth announced the acquisition of the entire share capital of The Creative Engagement Group on Monday, from funds managed by LDC and certain members of TCEG's management, for total consideration of £24.7m.
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The London-listed firm described TCEG as a collection of three creative agencies - WRG, The Moment and Just Communicate - which provide experiential marketing through events and digital marketing - including virtual and augmented reality - predominantly to healthcare clients.
It said the addition of TCEG would strengthen Huntsworth's ability to provide high quality digital creativity to its clients, and allow TCEG to benefit from access to the group's existing healthcare clients, especially in the US where there was “significant opportunity” for TCEG to increase its market share.
The addition of TCEG supported Huntsworth's strategy of adding capability to better support the needs of healthcare clients through both organic growth and selective acquisitions, the board claimed.
TCEG is based in the UK and services clients globally, with approximately one third of revenue generated in the US.
The TCEG management team was led by CEO Russ Lidstone and COO David Sharrock, with both set to remain with the business.
Huntsworth said the consideration of £24.7m would be financed through the group's existing facilities.
TCEG generated revenues of £26m and EBITDA of £3.8m in the year to 31 October 2016, and the group said it expected the acquisition to be accretive to the group's earnings in the current financial year.
Huntsworth said TCEG's gross assets were £26.6m as at 31 October 2016.
“TCEG is a great company with a wealth of talent and blue chip clients which will benefit from Huntsworth's reach and connections especially in healthcare,” said group CEO Paul Taaffe.
“With more and more clients seeking to engage both employees and customers with powerful experiences, TCEG is well positioned for future growth.”