UK financial PR firm set to be acquired by Teneo at over 5.3x operating profits
Tue, 10 Jan 2023 | BUSINESS SALE
UK financial public relations firm Tulchan Communications is reportedly set to be acquired by US PR giant Teneo, in a deal said to value the company at over £65 million. This figure would represent more than a 5.3x multiple of Tulchan’s £12.1 million operating profits for the year to March 31 2022, generated on turnover of £23.4 million.
According to reports in the Financial Times, citing sources with knowledge of the matter, the deal could be announced as early as Tuesday January 10. The acquisition would represent further consolidation in the UK’s strategic financial PR market, as well as the latest in a growing series of UK company acquisitions involving US buyers.
Tulchan is based on London’s Fleet Street and also has an office in Singapore. The group provides advisory services including financial communications, M&A and IPO, ESG, public policy and regulation and crisis and litigation.
Since it was founded in 2000 by senior partner Andrew Grant, Tulchan has established itself as a prominent firm in the UK’s financial PR industry. In recent years, the company has advised on several major deals, including Comcast’s 2018 acquisition of Sky, and also represented Unilever during Kraft Heinz’s unsuccessful 2017 takeover bid.
Speaking to PR Week, a source close to the deal said that Tulchan was attracted to Teneo’s international presence, with the firm’s lack of an international network said have become “a long-term strategic problem”. The source added that the deal would “create a truly marketing leading position in London, which will help us compete” and enable Tulchan to offer clients a wider range of services. Teneo was acquired by private equity company CVC in 2019.
Reports have indicated that there are not set to be job losses following the acquisition, but that Teneo and Tulchan are expected to ultimately combine their offices. Tulchan’s UK workforce stands at approximately 80, with a further 10 employees operating out of the firm’s Singapore office.
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