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Dutko Worldwide is Acquired by Publicly Traded Global Public Affairs, Public Relations and Healthcare Communications Group : 11-09-2009
Dutko Worldwide, the Washington, DC based global public policy management firm and Huntsworth plc, (HNTS,L) the London, UK based global public relations and healthcare communications group, today announced that Dutko will join the Huntsworth family of global public affairs communications brands.
Dutko Worldwide, headquartered in Washington, DC with ten regional offices throughout the United States and Europe since 2005 has been the largest independent public policy management firm in the U.S. The Huntsworth Group’s four operating brands are the global public relations, public affairs and investor relations network, Grayling; the financial and corporate communications group, Citigate; the healthcare communications group, Huntsworth Health; and the public relations group, Red. While Huntsworth has made significant acquisitions in recent years in the healthcare communications and public relations spaces, the addition of Dutko Worldwide represents a significant move into public affairs in the U.S. market.
Strategic Opportunity
Dutko will become the primary Huntsworth government affairs brand, while working with all parts of Huntsworth, will coordinate strategically within the Grayling brand. The combination of Dutko’s scale in the US lobbying and government relations market and Huntsworth’s international public affairs network creates a powerful proposition to existing and potential clients. With over $50m of public affairs revenues on a combined basis, Dutko and Grayling will be one of the leading lobbying/ public affairs networks The key opportunities for synergies are threefold:
As the largest independent public policy management group in the U.S., Dutko provides an immediate broad based platform for Grayling and the other Hunstworth brands to grow to scale in the US. Dutko and Huntsworth have limited overlap with existing clients, therefore enabling the Huntsworth Group to add US lobbying and Government relations services to its existing public affairs clients, and Dutko to add global public affairs services for its roster of 300 plus clients.
Huntsworth’s existing public affairs network provides services which are complementary to US government affairs activities. The combination thus allows the Huntsworth Group to broaden Dutko’s existing relationships within and without the US market.
Dutko and the Huntsworth group share a specialisation in the healthcare sector which has become a focus for US legislation . This acquisition permits the timely cross marketing of US lobbying and Government relations services to Huntsworth’s healthcare clients.
Dutko Worldwide CEO, Mark Irion will report directly to Huntsworth Chief Executive Peter Chadlington. Irion said, "Joining forces with the Huntsworth group of international public affairs and public relations companies marks a significant achievement in Dutko's six year long plan to build a global public policy management consultancy. We are especially excited about our new capabilities to orchestrate integrated public affairs and government affairs campaigns with Grayling, the world's third largest independent public relations, public affairs and investor relations network." Irion added, "we are so pleased to be poised to offer clients the global strategic communications, digital and public affairs resources of our new sister company, and the Dutko platform is perfectly positioned to accelerate Grayling's growth in the North American market."
Peter Chadlington, Chief Executive of Huntsworth plc, commented “We have been looking for some time for the right opportunity in Washington to extend our international public affairs network. In Dutko we have found a high quality management team with an impressive client roster and a robust business model supported by a high proportion of retainer fees. We look forward to offering existing Huntsworth clients more US based services as we, in turn, help Dutko expand outside the US. We believe the accretive deal we have made today further enhances our ability to attract and service global clients. We welcome Dutko to the group.”
Terms of the Transaction
Dutko CEO, Mark Irion stated that “the terms of the transaction perfectly suit both Dutko’s strategic ambitions and financial interests. We set out six years ago to build the first truly integrated global public policy management consultancies. Our merger into the Huntsworth family of companies both integrates one of the U.S.’s largest, independent, public policy management and consulting groups with a premier global public affairs group, but also perfectly aligns Dutko shareholders with the ongoing success of our original mission. Dutko Worldwide shareholders will be significant shareholders of Huntsworth, plc, and have exchanged their shares for Huntsworth shares. Huntsworth expects the transaction to be EPS-enhancing in its first full year of consolidation.
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