Creston to snap up US PR firm Cooney/Waters

Communications firm Creston has snapped up US healthcare PR operation Cooney/Waters in a £19.5m deal.

The transaction will come in three stages, including a £5.9m upfront payment to be financed from existing bank facilities and two subsequent payments in 2014 and 2017.

Creston says it expects the acquisition to be earnings enhancing in the first full financial year. The US firm will form a synergy with Creston’s UK-based healthcare PR agency, Red Door Communications. The acquisition is still awaiting shareholder approval at a general meeting tomorrow.

Singer analyst Jonathan Barrett said: “The proposed acquisitions expand Creston’s PR healthcare footprint in the key US market and will give the company greater access to many of the large global healthcare companies. At five times Ebit, the price is attractive.”

Creston has seen its revenues jump nine per cent in the first half to £32m.