Eight transactions were announced in the Advertising & Promotion segment in 2Q10, compared to 11 in the previous quarter. Aggregate transaction value was $1.3 billion for the quarter, up significantly compared to the previous quarter’s $121 million – largely due to Thomas H. Lee’s acquisition of inVentiv Health for $1.1 billion, at 1.0x revenue and 8.3x EBITDA. At the end of the second quarter, companies in Petsky Prunier’s Advertising & Promotion Index traded at a weighted average EV/LTM EBITDA multiple of 8.6x, slightly below the level it stood at the end of the first quarter.
ACTIVE SUBSEGMENTS Specialty Agency and Public Relations were the most active subsegments with two transactions each. All other subsegments, including Pharma Agency, General Agency, Media Planning & Buying and Retail Merchandising had one transaction each.
BUYERS Strategic buyers led deal activity during the quarter with seven transactions totaling approximately $140 million. The inVentiv Health take-private was the only buyout transaction announced this quarter, representing the bulk of transaction value for the segment.
TRANSACTIONS Other transactions included MDC Partners’ acquisitions of public relations firms Sloane & Company and Allison & Partners, Interpublic Group’s purchase of Delaney Lund Knox Warren from Creston plc for $40 million at 1.4x revenue and 8.6x EBITDA, Publicis Healthcare Communications Group’s acquisition of Resolute Communications, a UK-based healthcare communications agency, Chicago Growth Partners-backed Footprint Retail Services’ acquisition of Prism Retail Services and CBS Corporation’s acquisition of EcoMedia, an environmental media planning and buying company.