Chime eyes sports marketing growth with 18.23m takeover of Essentially
BRITISH marketing services group Chime Communications said yesterday that it has agreed to buy Essentially Group for £18.23m to boost its sports-marketing business.
Based on FTSE Small Cap firm Chime’s Monday closing price of 177.75p, the offer values each Essentially share at 8.08p, a premium of about 7.7 per cent to Essentially’s closing price of 7.5p.
Chime, which is chaired by public relations guru Sir Tim Bell, is the parent company of firm Bell Pottinger, while Essentially is a sports marketing, media and services company with business activities centered on rugby and cricket.
“The Essentially satellite offices in India, South Africa, Australia and New Zealand will enhance Chime’s existing business in the Commonwealth sports area,” the companies said in a statement.
Chime expects the deal to add to its earnings in the first full year after acquisition and before taking account of one-off costs relating to the acquisition and amortisation of intangible assets.