Acquisition of RLA Group Helps Mission Growth
Acquisition of RLA Group Helps Mission Growth
Acquisition of RLA Group provides specialist automotive, retail and media expertise plus expansion into Ireland. Mission enjoys continued strong organic growth in line with Group expectations.
The Mission Marketing Group plc the AIM listed national marketing communications and advertising group, announced today that it has acquired RLA Group (“RLA”), a leading marketing and communications agency, with offices in Bournemouth, Belfast and Edinburgh, specialising in on-line and offline communications and media buying for national and international clients, particularly in the automotive and retail sectors.
themission® has acquired the entire issued share capital of RLA for an initial consideration of £9.5m consisting of initial cash/loan notes consideration of £7.7m and a further £1.8m satisfied by the issue of 1,408,503 new ordinary shares in themission® issued at 131.725 pence per share. A deferred initial consideration of up to £2m is payable based on achieving performance targets to 31 December 2007, £1.2m cash and £0.8m in shares.
The combined initial and deferred initial consideration of £11.5m is payable if the annualised EBIT for the (period) exceeds £2.5m. This acquisition is expected to be immediately earnings enhancing on an annualised basis. A further potential payment of up to a maximum of £9.5m is due in March 2011, subject to RLA meeting challenging performance criteria based on its pre-tax profit performance over the approximately three year period from completion of the acquisition to 31 December 2010.
This final payment is payable in cash or up to 50% in shares, at the Company’s discretion. However under any scenario, the total consideration for RLA is capped at £20m plus an amount by which the acquired net assets at completion exceed £0.8m.
RLA was founded in 1984 and currently employs some 60 staff who will all join themission®. Following a recent period of development, RLA is now a full service marketing and communications group. It has built its reputation and success on working closely with major brands to help them communicate as powerfully and actively as possible through multiple media outlets at a national, regional and local level. This proposition is of particular value to clients with extended, national supply chain and distribution structures.
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