LONDON—Huntsworth, the international public relations and healthcare communications group led by Lord Chadlington, is expanding its Middle Eastern presence with the acquisition of its affiliate of three years, Momentum International Limited. At the end of 2008, Huntsworth invested in a start-up in Qatar, and Momentum will provide additional offices in Riyadh and Dubai and will bring in additional clients from Abu Dhabi and Bahrain.
Huntsworth will acquire the entire share capital of Momentum for an initial consideration of $2.8 million (£2.0 million) in cash, with the ultimate price rising to a maximum of $12 million (£8.4 million) based on either revenue or earnings growth. In order to generate a payment at the level of the cap, the average growth would need to be in excess of 50 percent per annum.
For the year ended 31 December 2008, Momentum had revenues of AED 7,601,000 (£1,447,000) and profit before interest and taxation of AED 2,437,000 (£464,000).
Momentum has been acquired from Guy Taylor, Ben Castree, Sonja Ohly and Eiluned Castree, who are members of the senior management team of the company and will continue to lead the business following the acquisition.
According to Sally Withey, chief operating officer of Huntsworth: “We are committed to expanding our global footprint to the benefit of our existing and new clients. The Middle East remains a vitally important part of the world’s economic geography where we continue to see strong growth opportunities. We have worked closely with Momentum for a number of years and are delighted to confirm that the agency is now fully part of the Huntsworth family.”
Adds Guy Taylor: “We have developed an excellent relationship with many of the Huntsworth agencies and their clients. The fact is that we complement each other’s skills and we share a very similar business culture. While nothing changes from an operational point of view, being part of the Huntsworth group will help us accelerate our expansion plans.”
Huntsworth owns several major public relations brands including Citigate Dewe Rogerson, Grayling, Huntsworth Health, Mmd, Red Consultancy and Trimedia.