Communisis acquires stake in The Garden Marketing agency
By Simon Nias Tuesday, 19 June 2012
Communisis has acquired a 49% stake in creative services firm The Garden Marketing (TGM) for a cash consideration of £400,000, with an option to buy the remaining shares for a further £600,000.
TGM, which was founded in 1987 and has a turnover of around £1m, specialises in creating lead generation and marketing communications for financial services and technology clients.
The London-based integrated marketing agency delivers print and digital marketing assets, advertising and direct mail campaigns across both consumer B2B channels.
The deal is Communisis' third acquisition this year, following Kieon and Yomego - announced simultaneously last month, albeit structured slightly differently with the Leeds-headquartered print manager initially taking a minority stake.
Andy Blundell, chief executive of Communisis, said that he anticipated "moving to a 100% position over time" and added that the group would continue to look to a mixture of organic and acquisition-led growth.
"Three [companies] have come through the process at the same time but our plans continue and we still expect our growth to come organically but also through looking at the right deals," said Blundell.
"I would anticipate that we would make further announcements in the second half - subject to the usual conditions. The key is that they have to be the right deals; these three were chosen very selectively and that will continue to be the case going forward."
In addition to extending Communisis' range of creative services, the acquisition has the added benefit of bringing "a significant new relationship with a major blue-chip financial services provider".
Blundell said that this client relationship was "an important consideration" but not a deciding one in choosing to acquire a significant stake in TGM, which he described as "quite unique" in its service offering.
"It's quite specific in terms of what it does," he added. "They employ people very used to working in a regulated environment and the job they do requires a lot of skill to get right – it's about knowing the rules and getting it right first time.
"Not only will this increase the resource that we have in IDC, but it will take us further into some specific areas around the creation of content, such as copywriting within a highly regulated field, which is something that is of interest to us.
"It makes us bigger and better within one specific niche. Content is king – we know that – we know that's where the value is and this deal is in tune with our strategy to move further upstream."
TGM managing director Graham Lee said: "We are delighted to become an associate company of Communisis and look forward to developing a progressively closer relationship.
"I believe that together, our combination of creative strategic thinking and enterprise scalability will give us the ability to deliver a unique and compelling marketing services proposition."
Meanwhile, Communisis said that trading since its interim management statement had been "encouraging" with a strong pipeline of business development opportunities. Expectations for the half-year results, which are due for publication on 26 July, remain unchanged.Tweet
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