Holmes Report 03 Jul 2017 // 7:05AM GMT
LONDON — Huntsworth has acquired The Creative Engagement Group (TCEG), a collection of three creative agencies focusing on the healthcare sector.
The deal, Huntsworth's first acquisition in several years, comes after BlueFocus sold its stake in the holding group. The Chinese holding group, which acquired almost 20% of Huntsworth four years ago, sold its shares earlier this year.
The entire share capital of TCEG is acquired from private equity fund LDC and TCEG shareholders for a total consideration of £24.7m. The group includes three creative agencies – WRG, The Moment and Just Communicate – that provide experiential marketing primarily through events and digital marketing, including virtual and augmented reality, predominantly to healthcare clients.
TCEG is based in the UK but services clients across the world, with approximately one third of revenue generated in the US. The TCEG management team is led by CEO Russ Lidstone and COO David Sharrock, and both will remain with the business.
TCEG generated revenues of approximately £26m and EBITDA of around £3.8m in the year to 31 October 2016. Huntsworth expects the acquisition to be accretive to the Group’s earnings in the current financial year. 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 Huntsworth 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."
Huntsworth Health has been the best-performing unit in the group's portfolio for several years, growing 13.8% to £90.8m in 2016.