PCI is one of Europe’s leading live communications specialists. Based in London with over 60 employees, PCI designs and produces live events, exhibitions, videos and brand environments for clients which include Microsoft, Toyota, B&Q, BT, Marks & Spencer, Kelloggs, Tivoli and Ford.

The acquisition further enhances Cordiant’s operations in live communications which already include HP:ICM, a leading live communications agency based in London, and Avid, a Chicago-based events specialist. PCI will join forces with HP:ICM to form the basis of a new face-to-face marketing network, with Richard Bamford of PCI becoming CEO of the enlarged operation.

The initial consideration will be satisfied by the issue of 7,675,052 new Cordiant shares of which 75% will be restricted from sale for a period of one year from completion. Maximum further consideration of £31.2 million may be payable in new Cordiant shares depending on the financial performance of PCI and HP:ICM to December 2004. PCI had revenues of £5.0 million and audited profit before tax of £1.4 million for the year ended 30 April 2001, and net assets of £0.6 million as at 30 April 2001. Prior to its acquisition by Cordiant, PCI acquired Ultimate Events Limited (Ultimate), a UK-based live communications agency. Ultimate had revenues of £2.9 million and audited profit before tax of £0.6 million for the year ended 30 April 2001, and net assets of £1.2 million as at 30 April 2001 .

Application has been made to the Financial Services Authority and the London Stock Exchange plc for 7,675,052 Ordinary shares of 50p each to be admitted to the Official List. Admission of the new shares was granted on 26 July 2001 and admission and trading is expected to commence on 30 July 2001.

Michael Bungey, CEO of Cordiant commented:

This acquisition further demonstrates our commitment to our strategy of acquiring leading brands and consolidating our strengths in marketing communications. Face-to-face marketing represents an exciting growth opportunity as clients employ new methods with which to build their brands.

Richard Bamford, CEO of PCI commented:

A key part of PCI’s continued growth will be the ability to deliver a consistent brand message on an international basis for our global clients. Cordiant gives us the benefit of their established international marketing communications resource and experience to accelerate that objective.