Enero back on acquisition trail with $6.5m deal for US agency Eastwick Communications

Enero has kept to its word and re-entered the acquisition market after reaching an agreement to buy US PR agency, Eastwick Communications.


Eastwick Communications co-founder and CEO Barbara Bates and Hotwire Group CEO Brendon Craigie

The move will see Eastwick, which specialises in the technology sector, merge with Enero-owned Hotwire PR in the US.

Enero, which also operates BMF, Naked, Frank and Dark Blue Sea, will pay an initial $5m for the business with additional undisclosed payments based on performance targets over the next four years.

Enero chief executive Matthew Melhuish had flagged the prospect of acquisitions last month after reporting a strong 2016 financial result.


Melhuish: “The merger of the Eastwick and Hotwire teams in the US allows us to provide clients with a more exciting and expansive offering”

The news saw Enero’s share price rise 3.45% to $1.20, giving the company a market capitalisation of $102.7m.

Melhuish said: “Enero’s first acquisition in seven years re-affirms Enero’s growth strategy for the US market through building our presence and scale in the higher margin sector of public relations.

“The merger of the Eastwick and Hotwire teams in the US will allow us to provide clients with a more exciting and expansive offering in this region. Eastwick’s reputation, along with similar values and ambitions to the rest of the wider group network, made this a compelling opportunity for capital deployment.”


The merged operations will trade in New York and San Francisco under the Hotwire North America banner and be led by one of Eastwick’s founders, Barbara Bates. Eastwick president, Heather Kernahan, will remain in the role.

Hotwire said in a statement the deal will open up “huge opportunities” in the US and other markets, including Asia Pacific.

“For clients this means Hotwire can better support their ambitions of global expansion, from North Anerica, EMEA and APAC and vice versa,” the firm said.

Hotwire group chief executive, Brendon Craigie, said: “The combination of the Hotwire and Eastwick businesses in the US ensures Hotwire can offer global clients a genuine alternative to behemoth multi-nationals.”

Meanwhile, investment firm Naos has increased its stake in Enero from 13.4% to 15.45%.


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