22 June 2007
In their fourth deal of the year for clients in the media sector, Kerman & Co advised the owners of Mongoose Media Limited, the contract advertising sales business, on the sale of the entire share capital in the company held by them, to Ten Alps Plc, for a maximum cash consideration of £3.4m.
Mongoose sells advertising across specialist print and digital media on behalf of associations and institutions. Based in London, it has 19 staff. Its 25 clients range from international titles such as Newsweek, National Geographic and Time Out, to specialist organisations such as The Multiple Sclerosis Society and the National Childbirth Trust.
An initial payment of £1.65m was made, with further possible earn-out payments of up to £1.45m on achievement by Mongoose of EBIT targets in the first year following completion, and a further £300,000 payable against the performance of certain client contracts. Mongoose will be run as an autonomous business within the Communications Division of Ten Alps, with existing management to ensure continuity and the potential to maximise growth.
Richard Beatty, Director of Mongoose, said: 'This is great news for both our clients and staff. Mongoose will continue to provide and develop the excellent standards that our customers expect from us, whilst broadening the range of services we can offer as a new part of the Ten Alps group.'
Alex Connock, Chief Executive of Ten Alps Plc, said: 'Mongoose and its young, talented sales team bring us considerable added firepower in advertising sales - a key constraint to organic growth in specialist factual media. The team also have an excellent client list and track record of profitability. We're looking forward to seeing even more of what they can do.'
Michael Bennett and Peter Babb led the Kerman & Co team, assisted by Michael Corcoran. Jonathan Watmough of Reynolds Porter Chamberlain, assisted by Frances Wills, represented the buyers.