New chapter for Story after Mission buy-out
The Mission Group has announced the acquisition of marketing agency, Story UK, which has offices in both Leeds and Edinburgh.
The buy out, in a deal which would be worth up to £13.5million will see Sue Mullen continue to act as managing director of the agency, while staff already at the agency will be retained, and receive shares in the company.
The news follows Story’s inclusion in The Drum’s Top 20 Takeover Targets feature (August 31). The article reported that Story’s annual turnover for the year was £4.2million with a gross profit of £2.8million, representing a 10 per cent year-on-year growth.
The Mission Group has acquired the entire issued share capital of the agency for an initial consideration of £6.9million consisting of an initial cash/loan notes of £4.1million and a further £2.1million which will be paid through the issue of 2,060,485 new ordinary shares in The Mission. These will be issued at 134.675 pence per share. An additional deferred initial consideration of £100,000 cash and £100,000 in shares is also payable.
There is also the possibility that should the agency reach set pre-tax profit criteria, a further payment of up to £6.4million would be due in March 2011.
Sue Mullen said that Story’s office in Leeds would not be affected by the buy out: “Leeds will remain as it is currently, which is essentially a strong satellite office for our business in the north of England. We will be focusing our attention on what we have here in Edinburgh and growing that.”
Mullen continued to say that the agency would not be looking to set up a London office, but would instead consider “regional opportunities” in developing the agency.
Story was established by Sue and Dave Mullen in 2002, and currently holds accounts with Scottish & Newcastle, Glenmorangie, Ulster Bank ROI and Scottish and Southern energy.
The Mission already has nine offices throughout the UK.