SWK secures controlling interest in CWG from 10 Group

Summerfield Wilmot Keene is taking control of the Leeds agency CWG

- formerly the Charles Walls Group - in a deal marking the withdrawal of

CWG's 10 Group owner from the agency scene.



SWK and CWG, which claim combined billings of more than £40

million, will keep their separate identities but hope to benefit from

clients needing services from bases in London and the North.



At the same time, the agreement gives CWG representation in the capital,

while allowing SWG access to the Leeds shop's design and website

development resources.



The acquisition is the second within a month for SWK, which has just

bought EPB Communications (Campaign, 7 September). SWK is paying £460,000 over five years for a 70 per cent stake in CWG. It will also

repay a £100,000 loan outstanding from CWG.



Like CWG, SWK is also a one-time 10 Group subsidiary, but bought itself

out in December 1999 after less than a year.



The AIM-listed 10 Group, which grew out of the former Brunnings

operation, said it wants to concentrate on investment and leisure

opportunities and is no longer interested in running wholly owned agency

subsidiaries.



Andy Moore, the 10 Group chairman, said: "Agencies are hands-on

businesses and I've been unable to commit the time and support

needed."



He added: "We've not been disappointed by CWG's performance, but it is

operating in a difficult market and needs to be part of a bigger

operation."



SWK's chief executive, Malcolm Summerfield, said: "Being an investment

company makes much more sense for 10 Group rather than buying businesses

it doesn't understand."



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