Sale of healthcare communications provider to Huntsworth plc.
Ambitious marcoms group Huntsworth has made a second pharmaceutical sector acquisition in less than two months, having snapped up medical education and PR agency Avenue HKM from Blackwell Science. We acted for Blackwell in the deal.
Huntsworth has paid £1.37m upfront, with a deferred consideration of £250,000 based on revenue levels over the year ahead. Avenue CEO Joanna Marchant now reports to Huntsworth healthcare CEO David Rowley, who joins Avenue’s board. Avenue associate director Dr Jennifer Garratt becomes a director and financial controller Tara Stimpson is finance director. Both also join the Avenue board.
Last year Avenue recorded pre-tax losses of £724,000; its staff numbers have fallen from 53 two years ago to 37. But it acts for clients such as GlaxoSmithKline, Pfizer Consumer Health, Wyeth Pharmaceuticals and Bristol-Myers Squibb.Avenue client wins this year have included a contract to promote Merck Pharmaceuticals’ colon cancer drug Erbitux and a deal to promote French firm Servier’s heart-disease treatment Coversyl. We think that te deal will help Avenue enormously, as they re-build the business.
Avenue was created in January 2000 following the merger of Bullet Communications and Blackwell Healthcare Communications – both formerly owned by Blackwell Publishing.
Rupert Ashe, CEO, D5 Capital
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