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Chime Pays £2m for Tree
UK-based marcoms group Cagney has agreed the sale of its research and analysis subsidiary Tree London to Chime Communications. Along with the sale of ad agency CST the move enables Cagney to shake off debt and refocus on core activities.
Marketing services group Media Square paid £430,000 in cash for CST, while Chime will pay around £2m for Tree, subject to a definitive agreement likely in February. Cagney says it will also reveal a new digital start-up next month, and give further details of its plans.
Chime, which is the owner of a number of research agencies, including Opinion Leader, Facts International, Naked Eye and Ledbury, also announced today that it will acquire a 60% stake in a new PR agency formed from the merger of Pelham Public Relations and Bell Pottinger Corporate and Financial. Chime will pay £2m for the stake and will raise £4.5m by placing new ordinary shares at 200p.
Tree founder and current Cagney CEO Steve Mattey will leave with the research agency and a new Cagney CEO will be announced. Kerry Simpson, MD of Cubo and an Executive Director of Cagney, said the board wished particularly like to express its gratitude to Mattey, who had 'successfully guided the group through a testing and critical phase in its evolution.'
Simpson adds that a recent strategic review concluded Cagney's shareholder interests would be 'best be served by selling CST and Tree and paying down its debts, enabling it to build upon its digital capabilities within its integrated communications and PR businesses.'
Web site: www.cagneyplc.com .
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