Creston makes £20m US coms acquisition
pharmafile | December 3, 2010 | News story | Medical Communications | Alembic Health Communications, Cooney Waters, Creston, Intensity Digital, Red Door Communications, medicial communications
Creston, the group which owns UK healthcare PR shop Red Door Communications, is to buy two US health and pharma coms businesses.
The proposed acquisition, for up to £19.5 million ($30.8 million), would see New York-based Cooney/Waters (PR) and its subsidiary Alembic Health Communications (advocacy) brought under Creston’s umbrella.
“The acquisition gives us the ability to compete more effectively and efficiently for global campaigns,” said Red Door chief executive Catherine Warne. “Our shared learnings will also mean enhanced capabilities and broader and deeper expertise.”
Creston emphasises what it calls Cooney/Waters’ “strong cultural and strategic fit” with Red Door: both agencies are part of the Health Collective Network, a multinational group of specialist independent consultancies.
“We are delighted that our previous bond of mutual respect and collaborative working has allowed us to become part of the same trading group,” says Warne.
The cash-only deal would see Creston taking over all of the assets and liabilities of Cooney/Waters, including 50 or so staff, subject to the approval of Creston’s shareholders.
If it goes ahead, the money would be made up of an initial payment of £5.9 million ($9.4 million) and an earn-out of up to £13.5 million ($21.4 million).
The latter would be payable in two instalments based on the average combined earnings before interest and tax of Cooney/Waters between the sale and 31 March 2013, and then on to 31 March 2015.
Creston chief executive Don Elgie said the acquisition would “open up new opportunities for growth in the US and Europe”.
Lenore Cooney, who founded Cooney/Waters in 1992, called the deal “the next stage of growth” for the agency, whose clients include Abbott Fund, Sanofi Pasteur and Coca-Cola Company.
These are busy times for Creston, which in October launched a new digital specialist agency called Intensity Digital, in a bid to pick up some of the pharma industry money which is moving into digital marketing.
Adam Hill
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