Marketing services group Creston, which owns Delaney Lund Knox Warren, is reported to have received interest from Cartesian Capital Group, a US private equity company, about a possible buyout. Creston is already in talks with another unnamed American private equity group.
Cartesian Capital Group holds over 10% of the group and is reported to have written to the board of Creston declaring its intent.
Creston first confirmed that it was in talks with an “unnamed” private equity company for a management buyout last month (MW.co.uk September 15). The talks are for a management buyout led by founder and chief executive Don Elgie for an estimated £40m.
The group is looking for a 100% ownership of Creston, including DLKW and direct marketing agency Tullo Marshall Warren. It also includes the pollster ICM Group.
Earlier this year, Creston’s US operation, headed by former FCB chief Steve Blamer, collapsed.
A buyout of Creston will be seen as the lead up to consolidation within the small marketing groups listed on the London exchanges, according to observers.