Creston plots buying spree after RDC deal

Marketing services group Creston is planning further acquisitions in Europe and the US following its purchase of London healthcare agency Red Door Communications for up to £13.5m last week.

Creston is to pay an initial consideration of £6.5m in cash and shares for RDC, plus up to £300,000 based on the agency's net assets - and up to a further £6.7m depending on performance.

The maximum will be paid only if pre-tax profits at RDC - run by MD Catherine Warne and director Julia Harries, who co-founded the agency in 2000 - increase by more than 30 per cent every year until March 2009.

Warne and Harries will remain in their current roles for at least four years.

Creston CEO Don Elgie told PRWeek: 'Our plan to buy a health PR firm in the US starts now. It will be client-led.'

He added: 'I would be disappointed if we had not acquired a US technology agency by next March. We also want to expand in continental Europe and the UK. We are after complementary, not competing, firms.'

RDC is Creston's seventh acquisition since the group emerged in 2001.

Earlier this year it acquired ad agency DLKW; it snapped up Nelson Bostock Communications in 2003 (PRWeek, 26 September 2003).

Last year RDC had pre-tax profits of £960,000 on revenues of £3.6m. It has 32 staff and was named European Healthcare PR Agency of the Year at last month's Sabre Awards.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in