Introduction to the Acquisition
The private equity firm, Epiris, is currently in negotiations to acquire a significant portion of Next 15 Group, a London-listed marketing services group. Epiris, which owns several notable companies including the Las Iguanas and Cafe Rouge restaurant chains, has approached Next 15 Group with an offer.
Details of the Deal
The offer includes 15 nearest subsidiaries, such as MHP Communications, a leading financial PR firm, M Booth, a consumer marketing company, Outcast, another PR agency, and Activate, a business-to-business demand generation specialist. Ares Management, a private credit giant, has been asked by Epiris to provide financial assistance for the deal.
Current Status of the Negotiations
Talks between Epiris and Next 15 are ongoing, although insiders have warned that a transaction is not certain to materialize. This approach was first reported earlier in the year, but the identity of the bidder was unclear at the time.
Next 15 Group Overview
Next 15 is a marketing services conglomerate that operates similarly to industry giants such as Publicis and WPP. The company has faced challenges, including a profit warning and a change in leadership earlier in the year due to "potentially serious misconduct" related to one of its subsidiaries, Mach49.
Recent Developments and Market Value
The company has already sold several units and is looking to focus on its remaining technology and data-driven customer businesses. Next 15 has a market value of around £420 million, with shares trading at around 404.5p. The shares have remained largely unchanged over the past year.
Conclusion
Epiris, Ares, and Next 15 have all declined to comment on the potential acquisition. The deal, if successful, would see Next 15 sell off a significant portion of its marketing division, allowing the company to focus on its core businesses.
