Both consultancies act independently from sponsorship rights holders. Redmandarin provides clients with specialist advice on developing accountable sponsorship strategies, whilst KEL is a full-service consultancy specialising in event management, PR and media services.
Redmandarin, established in 1999, has developed an innovative new sector within sponsorship consulting, working on an impartial basis with clients to establish and recommend targeted sponsorship strategies before identifying specific opportunities, negotiating sponsorship deals and measuring the return on investment. In its short history Redmandarin has worked for a blue chip client base and clients include Andersen, Barclays, Ericsson, Sky, Unilever and Visa.
Karen Earl Limited was established in 1984 and has become a household name in sponsorship with Karen herself being named Sponsorship Personality of the Year in 1999. KEL has specialist business divisions in Consultancy, Sponsorship Management and PR & Media. It is probably best known for taking Cornhill Insurance from a little known company to a household name through its cricket sponsorship. Current clients include Coca-Cola, CGNU, Gallaher, Guardian Media, Norwich Union, ntl, Royal Bank of Scotland, Wilkinson Sword and Whitbread.
Incepta will acquire Redmandarin for an initial cash consideration and repayment of debt of £0.9 million. Final consideration will be payable in cash, or at Incepta’s sole discretion, a mixture of cash and shares, depending on the future financial performance of Redmandarin. The maximum total consideration and repayment of debt payable is £3.9 million. Incepta will acquire KEL for an initial consideration of some £2.7 million comprising £1.8 million of cash and the issue of 1,945,288 new ordinary shares of 1p each in Incepta. Final consideration will be payable in cash, or at Incepta’s sole discretion, a mixture of cash and shares, depending on the future financial performance of KEL. The maximum total consideration payable is £6.3 million.
David Wright, Executive Chairman of Incepta said:
Our clients are increasingly recognising the strategic value of sponsorship in delivering brand communication. The acquisition of Karen Earl Limited and Redmandarin together offers our clients high-level, impartial and independent advice on sponsorship strategy development and implementation, which traditionally has been rights-led rather than brand-led. Our acquisition philosophy is to bring companies into the Group which are best in class, and we believe that by bringing the complimentary skills of Redmandarin and Karen Earl Limited into the Group we are able to offer the full range of sponsorship services that our clients are demanding.
Karen Earl, Managing Director of Karen Earl Limited said:
In 17 years we have built a strong reputation for effective sponsorship management. We see this move into the Incepta Group as the next stage in our development, enabling us to operate on an international basis. We have been impressed with the way in which Incepta’s business values mirror our own, something we saw as imperative when making the move from independence.
Sally Hancock, Chief Executive of Redmandarin said:
In the two years since our formation Redmandarin has very rapidly established itself at the forefront of sponsorship strategy consulting. The company has grown rapidly, with an increasingly international client list, and it makes perfect sense at this stage in our business to join the Incepta Group and to capitalise on its significant international presence and diverse, complementary core capabilities.
