28th January 2013
Cello Group plc, the insight and strategic marketing group, announces the acquisition of Mash Health Limited and Mash Health, Inc. Initial consideration is approximately £0.6 million, with further performance related consideration of up to a maximum of £0.9 million.
Mash specialises in providing consultancy and communications services to pharmaceutical, nutraceutical and consumer healthcare clients. Core clients include Reckitt Benckiser, GSK, BMS, Bayer, J&J and Danone.
Mash was established by Jane Ayton and Marianne MacDonald in 2009 and is based in London and New Jersey. In 2012, its first year of entering the Communiqué Awards, Mash won the Pharmaceutical Marketing Excellence Award for Education.
Mash will join Cello’s healthcare division, Cello Health, and will further complement Cello Health’s insight, advisory and evidence based capabilities in the ethical pharmaceutical area, with enhanced expertise in the consumer health area. This is consistent with Cello Health’s aim of becoming a leading global health services company.
Stephen Highley, Chairman of Cello Health, commented:
“Mash is a well-established brand particularly in the consumer end of the pharmaceutical space and this acquisition further reinforces our strong position in the consumer healthcare market. We have already worked closely with Mash on a range of client assignments and are looking forward to continuing to build on our exciting progress in establishing Cello Health as a leading player in the global healthcare market.”
The initial consideration consists of approximately £0.6 million of which £0.5 million is payable in cash, with the balance satisfied by the issue of 333,332 new ordinary shares. In addition, there are further performance related payments over the period to 31 December 2013. These further payments are in a mixture of cash and new ordinary shares at Cello’s discretion, with a minimum overall cash consideration of approximately 75% of the further consideration.
For the year to 31 March 2012, Mash had an unaudited turnover of £1.5 million, gross profits of £1.1 million and profits before tax of £0.1 million. Net assets as at 31 March 2012 were £0.3 million, including cash of £0.2 million.
Application has been made to the London Stock Exchange for the new shares to be admitted to AIM and it is expected that admission will take place on 1 February 2013.