Minority investment in Shepardson Stern + Kaminsky

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M&C Saatchi, the global marketing services business, announces that it has agreed to acquire a 33% stake in Shepardson Stern + Kaminsky LLC ("SS+K"), a New York creative agency with clients including Wells Fargo, HBO and Starbucks. The Agency won five Cannes Lions in 2014 and created the most-watched video of the Obama presidential campaign.
 
The estimated consideration for the initial 33% stake in SS+K is USD8.0m, based upon a PBT multiple of 8 applied to 2014 and 2015 performance. The members of SS+K will be able to elect that M&C Saatchi purchase 50% of the remaining equity from 2016 and the  remaining  balance from 2018 for considerations based on future profits.
 
SS+K had unaudited gross assets of USD13.4m as at 30 September 2014 and an unaudited operating profit of USD1.8m for the twelve months ended 30 September 2014. There will be no change to key management at SS+K as a result of the transaction.