Faulds Advertising to expand after management buy-out

Faulds Advertising is planning an aggressive assault on the advertising and communications markets north and south of the Scottish border, following a management buy-out.

The move follows the sale of Edinburgh-based Faulds Group, by founder Jim Faulds, in a multi-million pound deal with 12 managers, which was finalised last Friday.

As part of the deal, the group’s four divisions – Faulds Advertising, Navigator Response Advertising, Redpath Design and The Glasgow Agency – will be split into four companies.

Dennis Chester, now managing director of the biggest division, Faulds Advertising, says he is aiming to carry out joint ventures or buy-outs – probably in Manchester and London – with advertising agencies, design companies and sales promotion houses.

One proposed joint venture in London, planned in parallel with the acquisition of Faulds Advertising, collapsed last week, but other deals are already in negotiation.

He says: “To some extent Jim [Faulds] moved away from the business over the past three years and he wasn’t as motivated to expand it. That was frustrating for those in the company.”

Chester would not comment on the financial terms of the deal, but says the buy-out was for less than &£5m.

Faulds founded the business in 1985 after leaving Harrison Cowley. Key clients include EMAP, Royal Bank of Scotland and the Scottish Executive.