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Gold/Mining/Energy : Envoy Communications Group (TSE : ECG) -- Ignore unavailable to you. Want to Upgrade?

To: Jamie S who wrote (12)	7/16/1998 11:14:00 PM
From: Jamie S	Read Replies (1) \| Respond to of 274

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.