Media group Aegis has agreed to acquire the Australian company Mitchell Communication Group for £209.4 million.
Media group Aegis has agreed to acquire the Australian company Mitchell Communication Group for A$363 million (£209.4 million).
Under the terms of the deal Mitchell shareholders may choose to receive their consideration in cash, Aegis shares, or a combination of both.
Melbourne-based Mitchell is a media planner and buyer with offices across Australia and New Zealand. The company’s services include public relations and sportsground marketing. In 2009 the company reported sales of A$225.2 million and had gross assets of A$508.3 million.
Aegis is a marketing communications group operating in 82 countries. The London-based company has a media communications division, Aegis Media, and a market research division, Synovate. In 2009 Aegis posted a profit of £170.3 million on sales of £1.35 billion.
Mitchell founder and executive chairman Harold Mitchell is a 30 per cent shareholder in the company and intends to take his consideration in Aegis shares, making him a significant shareholder in Aegis. Mitchell also intends to lead the combined Aegis Media Pacific business as chairman.
The acquisition is expected to be earnings accretive for Aegis in the first full year following the deal. The deal is subject to court and Mitchell shareholder approval.