The partners of Delaney Lund Knox Warren & Partners will share a potential £38.2 million, after selling their agency to Creston Plc.
The cash and shares deal could see Mark Lund, the DLKW chief executive, and Greg Delaney, the agency's chairman, walk off with £6 million each, with Tom Knox, Gary Betts, Richard Warren and Malcolm Green standing to gain £3 million each.
The deal sees it sever links with Interpublic, formerly its biggest shareholder (Campaign, 4 February). IPG will receive £5.6 million.
The sums are reliant on the agency reaching set performance targets during the next three years. However, the shareholders will receive an initial payment of £19 million. Of this, Lund and Delaney will gain £3 million, with Knox, Warren, Green and Betts each receiving £1.5 million. The remainder of the money will be shared between DLKW's 30 equity holders.
Despite changing owner, the agency will continue to be run by the same management team, from the same building.
Delaney said: "In Creston, we are joining a dynamic and growing group of like-minded marketing services companies which are all highly respected in their fields. We believe there are plenty of growth opportunities across the sector."
Creston is a stock market-listed marketing services group. It owns five marketing companies, but DLKW will be its biggest shareholder.
- Opinion, p21
Who runs it - David Marshall, chairman; Don Elgie, chief executive; Barrie Brien, chief operating officer
What it owns - Marketing Science Group, CML Research (market research); Nelson Bostock Communications (PR); The Real Adventure, EMO Group (marketing communications)
What it makes - Turnover £29.5m
Operating profit - £2.4m.