Cello Group plc Acquisition of Mash Health (4331W)

TIDMCLL

RNS Number : 4331W

Cello Group plc

28 January 2013

 
 FOR IMMEDIATE RELEASE   28 January 2013

Cello Group plc

Acquisition of Mash Health

Cello Group plc (AIM: CLL, "Cello", or "the Group"), the insight and strategic marketing group, announces the acquisition of Mash Health Limited and Mash Health, Inc ("Mash"). Initial consideration is approximately GBP0.6 million, with further performance related consideration of up to a maximum of GBP0.9 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 GBP0.6 million of which GBP0.5 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 GBP1.5 million, gross profits of GBP1.1 million and profits before tax of GBP0.1 million. Net assets as at 31 March 2012 were GBP0.3 million, including cash of GBP0.2 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.

Enquiries:

 
 Cello Group plc 
 Mark Scott, Chief Executive             020 7812 8460 
 Mark Bentley, Group Finance Director 
 Cenkos 
 Bobbie Hilliam                          020 7397 8927 
 
 Buchanan 
 Mark Edwards                            020 7466 5000 
 Sophie McNulty 
 Clare Akhurst

This information is provided by RNS

The company news service from the London Stock Exchange

END

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