Engine placates rebels to seal Lake Capital deal

Engine Group shareholders have approved the company's £100 million sale to Lake Capital after rebels stalled the deal for more than a week.

Engine: shareholders agree the sale to Lake Capital
Engine: shareholders agree the sale to Lake Capital

More than 97 per cent of Engine Group’s shareholders approved Lake Capital’s acquisition last night, surpassing the 75 per cent threshold needed to get the deal over the line. The sale will complete next week, according to the company, which owns WCRS and Jam.

The news comes after a group of external shareholders, who had a combined 29 per cent stake in the company, blocked the deal because they felt it favoured those who were still employed by the company.

The acquisition was initially supposed to complete on Wednesday 20 August, but Lake Capital was forced to extend the deadline when the rebel shareholders refused to approve the deal.

It is understood that the deadlock was resolved after the external shareholders were offered terms that were on par with what current employees received.

Terry Graunke, chairman, principal and co-founder of Lake Capital, said: "We believe that the combined Engine, ORC and Trailer Park business will form the basis of a major, independent global force in marketing services and communications. We are very excited about working together with such great agencies, people and clients."

Peter Scott, Engine Group's chief executive, said: "This is the beginning of the next stage of the Engine growth story, the first ten years having been spent building an intrinsically different model, which we believe we can expand both organically and through acquisition particularly in the US and Asia."