LONDON—More than 25 partners at investor relations specialist Financial Dynamics will acquire a 10 per cent stake in the company this week, after the firm is sold to its management for £25 million. Financial Dynamics is the parent company of FD Morgen-Walke, one of the largest investor relations specialists in the U.S.
The deal will provide much needed cash to FD parent Cordiant, which needs to pay down debt of around £175m and is also trying to unload its stakes in Scholz & Friends in Germany and George Patterson Bates in Australia. With a viable takeover deal unlikely, the company is believed to be talking to banks about a debt-for-equity swap.
According to reports in the London media, chief executive Charles Watson will take the biggest individual holding; other partners who will have significant stakes include Tim Spratt, Alex Child-Villiers and Steve Jacobs.
Advent International, a U.S. private equity group, will back the deal.