LONDON, July 7, 2003 (PRIMEZONE) -- Cordiant has entered into a conditional agreement to sell 100% of FD International, its business communications network, to new legal entities owned and financed principally by funds managed by Advent International, the global private equity firm. The purchase consideration is 26.0 million Pounds payable in cash at completion. The 26.0 million Pounds is subject to upwards or downwards adjustment based on a completion statement to be agreed or determined following completion. This transaction represents the final step in Cordiant's stated plan to reduce debt through a programme of non-core asset disposals. The net transaction proceeds will be applied to repay borrowings.
FD International is a pan-European and North American business communications network focused on developing and implementing strategic communications programmes. It provides a range of services to clients including: financial and corporate public relations, investor relations, employee and integration communications, crisis and issues management, media and presentation training and corporate reporting.
As well as presence in the UK, FD International has operations in Ireland, France, Germany, and Greece and through affiliates in Italy and Sweden. In the US, FD International has operations in New York, Boston and San Francisco.
In the year ended 31 December 2002, FD International generated revenue of 33.9 million Pounds and profit before tax of 3.7 million Pounds (after exceptional items). Net assets attributable to FD International as at 31 December 2002 were 6.6 million Pounds.
FD International's synergy with the Bates Group is minimal. FD International has few customer relationships in common with the Bates Group and is independently located and operated. The disposal of FD International is not, therefore, expected to have a material operational impact on any other part of the Group.
A circular will be sent to shareholders shortly seeking their approval for this transaction at a meeting expected to be held on 23 July 2003, immediately before the meetings convened to consider the proposed acquisition of Cordiant by WPP Group plc.