Financial Dynamics attracts PE interest

The financial PR company put up for sale last month by Cordiant Communications is the subject of a bid from management as well as several private equity-backed offers.

Financial Dynamics, the financial public relations company owned by UK communications group Cordiant, has been the subject of a number of private equity backed offers since it announced that the business was for sale.

 

Cordiant Communications announced in February that it was planning to sell its interest in the business as part of plans to reduce costs. Also up for sale is the firm’s 77 per cent stake in advertising business Scholz & Friends and a majority interest in the group’s Australian operations. At the time, Cordiant said it had already received ‘significant interest’ in the business, although a spokesperson for the company today declined to comment on the sale’s progress.

 

Financial Dynamics, which represents a number of private equity firms including ABN AMRO Capital, GE Capital and Terra Firma Capital Partners, has received expressions of interest from ‘several private equity firms’, according to one source. Among the parties prepared to back a management buyout of the business is Cinven, also a client of FD, which is thought to be willing to offer between £20m and £25m for the company.

 

Cordiant acquired Financial Dynamics as part of its acquisition of Lighthouse Global Network in a deal worth $592m. Lighthouse Global was backed by US private equity firms Frontenac Company and GTCR Golder Rauner.

 

A price of £20m to £25m would result in a considerable write down on the business for Cordiant, which it values at £45m in its accounts. UK newspaper The Independent today reported that UBS Warburg, which is advising Cordiant on the sale, has put a value of £28m on the business, which reported profits last year of around £5m, compared with £10m three years ago.