BGF-backed Four Communication bolts on Broadgate Mainland

JosУЉ Rojo
28 August 2015

Tweet
Facebook
LinkedIn
Google plus
Send to

Four Communications Group, a London-headquartered media and marketing agency backed by Business Growth Fund (BGF) since July, has acquired British public relations company Broadgate Mainland.

The acquisition will see Broadgate Mainland renamed to Four Broadgate as it runs the group's communications campaigns for education, financial and professional services clients.

After joining forces, both companies are foreseen to reap an aggregate £20m in fee income in 2015, with total turnover expected to fall within the £35-40m region in the same period.

The bolt-on by Four Communications is the first to be financed via the £10m injected by BGF one month ago. The round, featuring a debt facility by HSBC, saw the growth capital specialist secure a minority stake in the business.

At the time, Four Communications revealed it would invest the funds in a buy-and-build scheme, both in the UK and abroad. According to unquote" sources, the agency is aiming to follow Broadgate's acquisition with four or five additional bolt-ons within the next 18 months.

The business initiated the build-up strategy in 2011, well before BGF's investment. Add-ons undertaken prior to the firm's involvement include BGB in 2011, Colman Getty in 2012, Kinross & Render in 2013 and Consolidated PR in 2014. According to its figures, the wave of acquisitions drove revenues up from £15m in 2010 to approximately £32m in 2014.

Company
Founded in 2001, Four Communications is an agency specialised in public relations, event management and other media and marketing services. Its 600-strong client base includes Etihad Airways, The Man Booker Prizes and Sotheby's International Realty, among others. With headquarters in London, the company also operates offices in Edinburgh, Abu Dhabi and Dubai, and employs 200 people.

Also headquartered in London, Broadgate was founded in 1994 and targets clients in the education and financial and professional services industries, such as GAM and Woodford Investment Management. With headcount sitting at 25 professionals, the company most recently posted revenes worth almost £3m.

People
Nan Williams is CEO at Four Communications, while Roland Cross is director at Broadgate.

Advisers
Company – Lewis Silkin (Legal); Grant Thornton (Financial due diligence).