French firm Publicis Groupe to acquire the UK’s leading communications firm Chemistry Communications Group plc

French firm Publicis Groupe is to acquire the UK’s leading communications firm, Chemistry Communications Group plc. Publicis announced it has reached an agreement with the UK firm on the terms of a recommended cash offer to acquire the whole of the issued and to be issued ordinary share capital of Chemistry. Under the agreement, Publicis Groupe will pay Chemistry shareholders 37 pence per share.

The transaction is valued at approximately £14.45 million. Subsequently, the Chemistry Board of Directors has recommended that its shareholders accept the offer. Chemistry is one of the leading independent integrated communications agencies in the UK. It specializes in integrated marketing services with a strong emphasis on digital communications. Chemistry´s services include advertising, digital strategy and marketing, direct marketing and promotional marketing.

For Publicis Groupe, the acquisition of Chemistry represents an attractive opportunity to enhance the Group’s expertise and proposition in the UK market, particularly in the fields of digital customer relationship management and data analytics. It also provides Chemistry with the opportunity to leverage Publicis’ Worldwide global network to service its existing international clients and expand its offering into end markets in which it is not currently present.

The resulting enlarged group in the UK will provide a powerful platform to continue to attract and retain leading talent from across the industry.

Publicis Groupe is the world´s third largest communications group. With activities spanning 104 countries on five continents, Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, and numerous agencies including Fallon, 49%-owned Bartle Bogle Hegarty, and Kaplan Thaler Group.

Publicis Groupe´s specialized agencies and marketing services offer healthcare communications with Publicis Healthcare Communications Group, sustainability communications and multicultural communications.

Chemistry was established in August 2000 and began trading on the London PLUS Stock Exchange in January 2001. The agency employs nearly 180 communications specialists, and comprises three UK agencies: the headquarters and main agency in London, Bearpark, a publishing and events company specializing in IT and its digital specialist agency based in Nottingham.

The group has established a growing reputation for its ability to deliver integrated marketing services with a digital specialism, in particular online relationship marketing programs, digital communications, large scale website design and builds as well as advertising, direct marketing and promotional marketing. Clients include Diageo, Kraft, Unilever, Emirates, Orange, Experian, Tesco, Premier Foods and SCA Hygiene, McNeil Nutritionals and Novartis.

31 Jan 2011.