ENVOY COMMUNICATIONS (TSE:ECG) CLOSES PROMANAD ACQUISITION
--New agency will be the third largest Canadian owned and operated in the
country--
TORONTO, July 16 /CNW/ - Envoy Communications Group (TSE:ECG) announced
today that it has closed the acquisition of 100% of Promanad Communications
Inc. making Communique Group the third largest Canadian owned and operated
agency in Canada.
Promanad Communications earned $1.2 million before interest and taxes in
their fiscal year ending May 31, 1998. Envoy will merge Promanad into The
Communiqu‚ Group Inc., Envoy's wholly-owned operating company and take
advantage of savings which are expected to total an additional $1 million of
profit before interest and taxes. Envoy earned $0.08 per share in the six
months ending March 31, 1998. Our second half of our fiscal year ending
September 30, 1998 will even be stronger. In our 1999 fiscal year beginning
October 1, 1998, we expect to double our EBITDA over our 1998 results due to
the successful acquisition of Promanad. The Communiqu‚ Group will have over
150 employees operating from Communiqu‚'s state-of-the-art facility in
Toronto. The company's capitalized billings will be approximately $103
million.
''At September 30, 1998 Envoy's cash position will be over $6 million
with no long-term debt. With this strong balance sheet position, we expect to
be able to complete our next acquisition without any additional dilution,''
said Geoff Genovese, President and CEO of Envoy.
AdMedia Partners, a leading Communications M&A firm in New York, has
identified several acquisition targets for Envoy in the United States.
Communiqu‚ and Promanad offer fully integrated marketing campaigns that
cover the spectrum of the marketing mix for many of Canada's top corporations
including: adidas, A&W Food Service Canada, Benjamin Moore Paints,
Bridgestone/Firestone Canada, Budget Rent a Car Toronto, Honda Power
Equipment, Japan Camera Center, Liquor Control Board of Ontario, Microsoft
Canada, One of a Kind, Toshiba of Canada, Toronto Transit Commission, United
Distillers and Vintners.
Envoy Communications Group is a growing network of strategic marketing
companies. The Group offers a new generation of innovative and fully
integrated communications services that help clients effectively market their
products and services. |
