Ad agency deal makes Delaney a millionaire

Six new advertising millionaires were created yesterday when Creston, the marketing group, bought DLKW Group, the agency behind the Halifax television ads starring its staff, Johnny Vaughn's Capital Radio breakfast show and Burger King, for up to £38.3m.

The deal will land Greg Delaney and Mark Lund, the chairman and chief executive of DLKW, £2m in cash each plus up to £900,000 each in Creston shares.

Of the 33 shareholders in DLKW, another four will get £1m each in cash plus up to £430,000 each in shares. These are Tom Knox, the deputy chief executive, Richard Warren, the planning director, and the creative directors Gary Betts and Malcolm Green. Creston is also buying the 26 per cent of DLKW owned by Interpublic Group, the US marketing services group.

Mr Delaney said: "We see a very bright future for ourselves within the Creston group which is why we are happy to be major Creston shareholders."

The deal will mean Creston, which has public relations, market research and direct marketing businesses, will add an advertising agency with an established client base and proven expertise to its operations.

Don Elgie, Creston's chief executive and a former Saatchi & Saatchi director, said his company's clients - such as BMW and Lloyds TSB - would benefit from the addition of an advertising agency into the group.

The deal involves a down payment of £15m in cash and £4m shares to buy the DLKW holding company, Face Communications, plus a deferred payment of £19.3m based on DLKW's profit-related performance over the next three years. The deal will be financed by Creston's existing £5.5m of cash reserves plus a placing and open offer for new shares in Creston worth £9.5m to fund the initial consideration.

Creston was a former cash shell, listed on the stock market, which Mr Elgie acquired to build a new media services group in January 2001. He said: "Fifty per cent of the marketing pound is spent on advertising; all statistical forecasts on the advertising industry shows it is an upward curve, and we are confident of the financial and trading prospects of the group."

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

SThree: Talent Acquisition Consultant

£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

Day In a Page

John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

39.8 degrees recorded on Tube

There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

Jessie Cave's feminist cartoons

The Harry Potter star tells Alice Jones how a one-night stand changed her life
10 best barbecue books

Fire up the barbie: 10 best barbecue books

We've got Bibles to get you grilling and smoking like a true south American pro
Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

No grace of God for Katy Perry as sisters act to stop her buying convent

Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

Residents just want water and power in a city chosen to be a ‘smart’ metropolis

The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

Something wicked?

Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
10 best sun creams for body

10 best sun creams for body

Make sure you’re protected from head to toe in the heatwave
Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

Nick Bollettieri's Wimbledon files

Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

There is more than a shiny trophy to be won by England’s World Cup women

The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed