By Greg Hazley
London-based healthcare communications company Creston has entered into a conditional agreement to acquire Cooney/Waters Group, the New York-based healthcare PR specialist with $12.3M in revenue last year.
The cash deal, worth up to $30M-plus, would put C/W and its Alembic Health Communications advocacy unit within the Creston Health division of the London-based company. C/W has been affiliated with Creston’s U.K. PR unit Red Door Communications for the past two years.
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Lenore Cooney, founder and chairman of C/W who will remain at the helm of the unit as CEO, called the move the “next stage of growth” for the firm with operational benefits for both parties.
Cooney will report to Creston CEO Don Elgie. “Cooney/Waters’ strong cultural and strategic fit with Red Door, our UK healthcare PR firm, will enable seamless integration with Creston, which will open up new opportunities for growth in the US and Europe,” he said in a statement.
Creston, which also owns PAN Advertising and medical education unit ROCK Medical Communication, said it will keep C/W’s senior team in place, including Timothy Bird as president and COO, executive VPs Fred Lake and Lisa Weiss, and Alembic president Sherri Michelstein.
Despite a rough year for PR firms in 2009, C/W’s $12.3M in revenue was up 18 percent over 2008, although it posted a $900K loss before tax for '09. Its staff is in the 40-45 range.
The acquisition price includes an initial payment of £5.9M ($9.2M) and earn-out payments up to £13.5m ($21M) earn-out to be paid in two installments in March 2013 and March 2015.
The deal goes to Creston shareholders on Dec. 15.
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