Mission Group acquires Story
Story UK has been bought by The Mission Group in a deal which would be worth up to £13.5million.
The deal 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 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 £0.1million cash and £0.1million 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.
The Drum had chosen Story as one of its Top 20 takeover targets in its previous issue, when the agency reported that its 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 already has nine offices through out the UK, including Bray Leino and Big Communications.
Iain Ferguson, chief executive of The Mission Group, commented: “Story completes a wonderful hat-trick for The Mission this summer. It’s an impressive company that will give us additional depth and expertise and respected leaders in direct and digital marketing. Coming a few months after April-Six and ThinkBDW increased our strength in the IT and property markets, this latest acquisition adds new capabilities in more, dynamic sectors – including drinks, luxury goods, financial services and utilities.”