Aegis in lead to buy agency

A takeover of Dublin agency Brindley Advertising is several weeks away, with Aegis Ireland in pole position at this point. The purchase price is likely to be €12-€18 million, sources said yesterday.

Due diligence on behalf of Aegis has not begun at Brindley, but the companies are in close contact about a potential takeover. IBI Corporate Finance is handling the sale.

It is understood the purchase by Aegis Ireland has been cleared in principal by its British parent. If a purchase goes ahead, it is not clear whether all the money will be provided via the Irish business or its British parent.

Sources close to the proposed deal said other companies were still interested in acquiring Brindley, but Aegis was effectively the preferred bidder.

One of the issues which still has to be considered is whether director Mr Basil Brindley will retain a central role in the business.

It is managed on a day-to-day basis by another director, Mr Michael McCabe.

Mr Brindley, a low-profile figure, was not available for comment yesterday.

If Aegis does not end up purchasing the agency, other companies might come forward. Industry speculation has centred on Irish International, Mediavest, Initiative or DDFH&B.

However, some agencies have baulked at the scale of the purchase price.

Aegis is effectively two companies in the Republic: Vizeum and Carat Ireland. Both are involved in media buying and planning services but they are run separately due to potential conflicts among competing clients.

Mr Pat Donnelly is the chairman of the company at present but intends to retire within the next month. He is expected to devote his attention to a new TV venture with former Eircom executive Mr Michael Murphy.

Brindley's main business is the Government's print advertising contract awarded in recent months by the Office of Public Works.

The contract is believed to be worth about €9.8 million over three years. Despite competition from 15 agencies, Brindley emerged last October to win the account once again. It has held the business for the past 20 years.