CORDIANT COMPLETES SALE OF AUSTRALIAN AGENCY
Deal for George Patterson Bates Said to Be Worth $60 Million
CORDIANT ENGINEERS LAST-MINUTE REPRIEVE
Deal Avoids Suspension of Trading on London Exchange
When the deal closes this week, management for FD International, also known as Financial Dynamics, will hold a 10% stake in the firm, with Advent International, a Boston-based private equity firm, holding the balance.
FD International's CEO, Charles Watson, has been leading the buyout from London since February, when Cordiant had agreed to split up parts of its operations. Mr. Watson and 24 other executives are to split the 10% holding.
FD International employs a staff of 70 at its U.S. unit, FD Morgen-Walke, which has offices in Boston, New York and San Francisco. Outside the U.S., FD International operates in Athens, Dublin, Frankfurt, London, Madrid, Milan, Paris and Stockholm, and in the Middle East. The financial specialist agency represents a range of U.S. clients including Freddie Mac and GMAC consumer mortgage division.
Paying off debt
Cordiant is looking to raise about $220 million to help pay off its debts, and has until July 15 to complete the sales of three major marketing agency holdings. The imminent closure of the FD management buyout follows Friday's sale of George Patterson Bates, Cordiant's Australian agency, for almost $60 million. The last of Cordiant's holdings on the block is ad agency Scholz & Friends.
Cordiant, trading in the U.S. as American Depositary Receipts, was down 4 cents this morning to 73 cents.