Essentially Group Ltd has taken on the management and contracts for 40 South African rugby union players.
The sports marketing and professional services provider already had a strong base in South Africa and Stephan Weyers and Gerrie Swart, who come with the acquisition, will run the enlarged rugby and cricket management business.
Essentially is paying Rand4m (£258,000), including 1m shares at 9.2p each, for the business. That is equivalent to four times operating profit so the deal will be immediately earnings enhancing.
Essentially’s South African business is already the sole contracted commercial advisor to the South African Rugby Players Association. Essentially is the exclusive commercial agency for the British Lions tour to South Africa in 2009.
Historic motor racing organiser Masters Historic Racing recently appointed Essentially as its exclusive commercial marketing agency.
At 8.75p a share, Essentially is valued at £17.2m.
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