The agency will form part of Cordiant subsidiary Business Communications International, while operating independently under its own name.
The upfront payment from Cordiant in the all-shares deal is $10 million. There are no restrictions on the shares being issued, leaving the sellers free to trade shares for cash once a final deal is agreed to.
A further $5 million in shares will be paid if the Irish agency meets certain profit targets between April and December 2003.
G&K's client-base includes Coca-Cola Co., Microsoft Corp., Dell Computer Corp., Bank of Ireland, Eircom, Aer Rianta and Eircell. -- Gerard O'Dwyer
Copyright April 2001, Crain Communications Inc.