Sportsworld spends £8 million Down Under
Article Date: May 01 2001Acquisitive sports marketing group Sportsworld Media is to spend up to £8.1 million pounds on its Australian rival Elite Sports Properties, writes Nancy Smith.
Sportsworld Media (SWD) says it will become one of the largest Australian sports marketing companies following the acquisition of Melbourne-based Elite Sports Properties (ESP).
It will pay £6.1 million initially for the company and a maximum of £8.1 million over the next two financial years, depending on ESP's net profits during that time.
The acquisition is set to be earnings enhancing in the first full year of fully listed Sportworld Media's ownership. Last year, ESP's pre-tax profits increased 74 per cent to £1.4 million while turnover increased 24 per cent to £2.6 million against the same period in 1999. ESP, which specialises in athlete management, entertainment and promotion, manages over 20 current Olympic, World and Commonwealth champions.
Geoff Brown, chief executive of Sportsworld says the purchase is in line with its acquisition strategy of developing a portfolio of sports and lifestyle marketing businesses. This is the second acquisition Sportsworld Media has made this year. In March it snapped up athlete management group HN Sports & Entertainment for an initial £583,454 in shares and £373,456 in cash.
A further fee of up to £4 million may also become payable in a combination of loan notes and shares depending on HN Sports' profit achievements over a period of four years. At 355p, Sportworld's ambitious acquisition strategy has not distracted the group however.
The company said third quarter business has continued to grow strongly, and it expects trading to continue in line with expectations.
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