M&C Saatchi has been on a pre-Christmas shopping trip, coming home with a 33 per cent stake in New York based creative agency Shepardson Stern + Kaminsky.
The $8m (£5.1m) deal is based on SS+K’s gross assets of $13.4m (£8.5m) and unaudited operating profit of $1.8m (£1.1m) for the year to 30 September and a client list including the likes of Wells Fargo, HBO and Starbucks.
Winner of five Cannes Lions in 2014 the agency is best known for its role in creating the most watched video of the Obama presidential campaign.
In a statement M&C Saatchi said: “The estimated consideration for the initial 33 per cent stake in SS+K is $8.0m, based upon a PBT multiple of eight applied to 2014 and 2015 performance. The members of SS+K will be able to elect that M&C Saatchi purchase 50 per cent of the remaining equity from 2016 and the remaining balance from 2018 for considerations based on future profits.”
No management changes at SS+K are planned as a consequence of the purchase.