China's largest PR group, BlueFocus Communications, plans to take a nearly 20% stake in London-based PR group Huntsworth worth $56.3M that will see both conglomerates work together on global business.

Huntsworth CEO Peter Chadlington said the deal is an "inflection point" for his company and an "unprecedented alliance between leading Eastern and Western public relations consultancies."

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Chadlington, Zhao

BlueFocus, based in Beijing, was founded in 1996 and is publicly traded on Hong Kong's GEM exchange. It has major operations in Guagzhou and Shanghai, as well as 23 regional offices for a total of about 500 staffers. Clients include AMD, Sony, Cisco, Canon and Symantec.

BlueFocus CEO Oscar Zhao will get a seat on Huntsworth's board if the deal passes shareholder and regulatory approval.

Chadlington said the firms are exchanging staff and will establish a regional headquarters in Singapore.

In addition to the China stake, the London-based group reported 2012 revenues on April 25 of £173M, a like-for-like decline of 0.3%.

Citigate saw a "difficult year" in 2012. Revenues fell by 10.5% partly from fewer transactions in London. The firm is optimistic about 2013 and has won several large IPO PR clients, including ensure, the largest of the year so far.

Healthcare PR operation Huntsworth Health saw revenues climb 6.8% on strong digital gains, while consumer operation Red also rose, 11%. 

Grayling fell 3.1%, although profits rose through cost control and "tight management." The firm has a new CEO, Pete Pedersen, as is working on a "clear focus" for the global firm.

Shares of Huntsworth spiked 22% on the BlueFocus announcement, its biggest gain since 2008, according to Bloomberg.

Huntsworth has been hampered for growth with its focus on Europe, where economies have struggled since the financial crisis. Its CFO resigned early last year among a $4.5M restructuring.

Key account wins for the year were Marks & Spencer and the UN Intergovernmental Panel on Climate Change.