MORI Puts Itself on the Market

The Board of MORI, the UK's largest independent MR agency, is entering discussions with a number of potential buyers. The company was the subject of an MBO 3-4 years ago and the decision to invite bids is reportedly in line with the original plan under the venture capital model. A price tag of £100m has been mentioned by the FT, but has not, according to MORI, come from anyone within the company.

MORI is owned by three major blocks. Venture capitalists 3i own around 41% and the remainder is split roughly two thirds:one third respectively between the management and founder Prof Robert Worcester. There is no indication that the decision to look for buyers has come from one or other of these groups - it has reportedly been part of the plan since the MBO. The management's 39.5% stake can be further split into c.16% MBO team and c.23% staff. More than 200 MORI staff have shares or options.

According to Chief Executive Brian Gosschalk, the company received a number of approaches before the intention to sell was announced, and have seen more interest since from a broad spectrum of companies, including big agency groups, investment houses and others. Asked about the relevance of the figure quoted in the FT, Gosschalk refused to be drawn and said it had 'not come from me... or anyone at MORI. We want to wait and see what comes back from the process'. The sale is being handled by corporate finance specialists LongAcre and is expected to take place in the next 6 months, although Gosschalk says that there is 'no particular timing imperative' with a committed management team and an extremely buoyant current situation. MORI has been the fastest growing major agency in the UK for the past 3 years and has enjoyed 'a particularly strong month in May' according to the CEO.

MORI has made much of its independence in recent years but its name and current success will make it a plum target for the major MR groups. With the ink on the TNS acquisition of NFO still drying, competitors may see MORI as an opportunity to stay in touch with the UK's market leader in sheer size terms - however, MORI is much more than multinational fodder and it is unlikely that any buyer would wish to dispense with or gradually assimilate what is arguably the UK's best-known MR brand. Brian Gosschalk says that the company are looking for 'a strategic and cultural fit as well as a financial one' - and whereas of course they all say that, MORI is in a stronger position than most to ensure that it gets it.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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