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Pearl & Dean could merge with Carlton if VC deal confirmed

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By The Drum Team, Editorial

March 4, 2008 | 2 min read

Industry speculation has suggested that SMG-owned cinema advertising firm Pearl & Dean is set to be subject to a bid by an Australian venture capital firm.

It is thought that the firm, Pacific Equity Partners, has also been monitoring Carlton Screen Advertising.

Such a move could see CSA and Pearl & Dean merge, although speculation has hinted that the Pearl & Dean name would be kept despite the SMG-owned company being the smaller of the two.

The VC firm, which has a number of cinema interests including a cinema sales house and the Hoyts cinema chain in Australia, is thought to have approached CSA owner ITV earlier this year.

Andy Niblett, head of broadcast at Feather Brooksbank, said that he wouldn’t expect a huge change in rates if such a move was completed and admitted that such a deal would be a logical business move for both companies.

“There is not enormous growth in the market and on that basis, there would be no need to worry about the introduction of huge rate hikes.”

Such a move had been mooted before, in late 2006, before the new management took charge at SMG.

Pearl & Dean was bought by SMG in 1999 and now accounts for 25 percent of the cinema advertising marketing in the UK, while Carlton holds a 75 percent share.

A spokesperson for SMG declined to comment on the speculation as The Drum went to press.

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