Disposal
July 07 2003 - 3:01AM
UK Regulatory
RNS Number:2166N
Cordiant Communications Group PLC
04 July 2003
CORDIANT COMMUNICATIONS GROUP PLC
("Cordiant")
Disposal of FD International
Cordiant has entered into a conditional agreement to sell 100% of FD
International, its business communications network, to new legal entities owned
and financed principally by funds managed by Advent International, the global
private equity firm. The purchase consideration is #26.0 million payable in cash
at completion. The #26.0 million is subject to upwards or downwards adjustment
based on a completion statement to be agreed or determined following completion.
This transaction represents the final step in Cordiant's stated plan to reduce
debt through a programme of non-core asset disposals. The net transaction
proceeds will be applied to repay borrowings.
FD International is a pan-European and North American business communications
network focused on developing and implementing strategic communications
programmes. It provides a range of services to clients including: financial and
corporate public relations, investor relations, employee and integration
communications, crisis and issues management, media and presentation training
and corporate reporting.
As well as presence in the UK, FD International has operations in Ireland,
France, Germany, and Greece and through affiliates in Italy and Sweden. In the
US, FD International has operations in New York, Boston and San Francisco.
In the year ended 31 December 2002, FD International generated revenue of #33.9
million and profit before tax of #3.7 million (after exceptional items). Net
assets attributable to FD International as at 31 December 2002 were #6.6
million.
FD International's synergy with the Bates Group is minimal. FD International has
few customer relationships in common with the Bates Group and is independently
located and operated. The disposal of FD International is not, therefore,
expected to have a material operational impact on any other part of the Group.
A circular will be sent to shareholders shortly seeking their approval for this
transaction at a meeting expected to be held on 23 July 2003, immediately before
the meetings convened to consider the proposed acquisition of Cordiant by WPP
Group plc.
4 July 2003
Enquiries
College Hill Tel: +44 (0) 20 7457 2020
Alex Sandberg
Adrian Duffield
This information is provided by RNS
The company news service from the London Stock Exchange
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