WPP GROUP PLC
8 September 1999
WPP ACQUIRES STAKE IN HIGH CO
Strengthens marketing services and new technology resource
in Continental Europe
WPP Group plc (WPP) announces that it has conditionally
agreed to acquire a 30% interest in High Co, the French
marketing services and new technology group, which is listed
on the Nouveau Marchi in France.
WPP will acquire shares representing 18% of the company from
High Cos main shareholder. The balance of approximately 12%
will be acquired by a new equity issue. The investment is
subject to shareholder approval at an EGM to be convened in
October. The subscription price for the new shares and
acquisition price will be 50 euros per share.
In the 10 years since it was founded by Fridiric Chevalier,
chairman of the management board, High Co has become one of
Frances leading marketing services companies, ranking in
the top three in direct marketing.
High Cos subsidiaries include High Co Conseil in business-
to-business consulting; Kenya, a direct marketing agency;
Ptle Production, a print-buying company; Editum, a consumer
magazine producer; and the new technologies division which
includes Netforce, specialists in website design. Welcome
Real Time and Scan Coupon specialise in smart card and
promotional coupon management. The Group employs around 300
people in Paris and Aix-en-Provence.
High Co groups consolidated turnover for the year ended 31
December 1998 was FFr384 million. Pre-tax profits were FFr31
million for the same period and net assets were FFr83
million at 31 December 1998.
For WPP, this strategic investment expands its presence in
France and the rest of Continental Europe and strengthens
its marketing services capabilities, particularly in the
area of direct marketing and new technology.
For High Co, the investment offers access to an
international network, optimises its investment in new
technology and enables it to attract major international
clients.
Commenting on the deal, Fridiric Chevalier said, 'This
association with WPP is excellent news for the future of the
High Co Group. For a number of months we have been thinking
about the best way to pursue our international expansion to
maximise the companys potential and to be able to service
our clients internationally. Finding a partner of worldwide
stature of the quality of WPP will enable us to maintain our
entrepreneurial and innovative style, which has always been
High Cos strength. It will also give us access
geographically and qualitatively to the resources of a group
which is not only one of the largest but importantly, one of
the best in the world.'
For further information, please contact :
Feona McEwan at WPP London T: 0171 408 2204
Valerie Navarro at High Co group T: 00 33 4 4224 5817
www.highco.fr
www.wpp.com
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