Enero sells stake in Frank PR as part of management buyout

Enero Group Limited has sold its interest in Frank PR as part of a management buyout by founder and chairman Graham Goodkind and managing director Alex Grier.

Goodkind and Grier were two of Frank PR’s existing 25% minority shareholders, with Enero holding a 75% stake.

In an ASX announcement, Enero revealed it has now sold the agency which was originally acquired in 2007. Frank PR’s Australian operations shuttered in 2020.

Enero will recognise a non-cash loss on the sale of approximately $9.5 million to $10 million, before income tax, and after allowing for cash consideration of $1.5 million for the 75% stake.

Enero CEO Brent Scrimshaw

CEO Brent Scrimshaw said the sale will provide capital for growth opportunities and acquisitions.

“Enero continues to sharpen its focus on the core agencies of the Group in line with its strategy announced at the 2020 AGM.

“The Frank sale will provide additional capital to allocated to high growth opportunities across the global network of the Hotwire & Orchard brands along with BMF in Sydney, in addition to future acquisitions that accelerate capabilities across the Group.”

Enero recently reported its half-year results for the six months ending 31 December 2020, revealing net revenue rose 19% to A$81 million and operating EBITDA was up 129.2% to A$24.3 million, on the prior corresponding reporting period.

Australian operations saw revenue growth of 6.6%, and revenue was $32.7 million. Frank PR contributed 5.3% of Enero’s net revenue for the period, or $4.3 million.

Goodkind thanked Enero for its support over the past 14 years, and said the business has been “a great owner, shareholder, partner and friend” of Frank PR.

“At heart we’re entrepreneurs, so we have always been keen to take the business independent again one day.

“I am grateful to Brent Scrimshaw and the Enero board for the way they have conducted negotiations and wish the group every success in the future.”

Enero Group’s other subsidiaries including BMF, CPR, The Digital Edge, Hotwire, The Leading Edge, OB Media and Orchard.


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