Teneo, the global public relations and consulting firm backed by CVC Capital Partners, agreed to acquire U.K. competitor Tulchan Communications.
Tulchan’s senior team will all join Teneo and become part of its strategy and communications group, according to a statement, which confirmed an earlier Bloomberg News report. Financial details weren’t disclosed.
The transaction values Tulchan at more than £65 million ($79 million), people with knowledge of the matter said. Tulchan, founded by senior partner Andrew Grant in 2000, has more than 70 professionals in London and Singapore, according to the statement.
Tulchan provides communications advice to blue-chip companies on strategy and transactions such as mergers and initial public offerings. Big clients include Unilever Plc and Marks & Spencer Group Plc and deals such as Comcast Corp.’s acquisition of Sky Plc.
“The acquisition of Tulchan is our latest action to deepen our capabilities across our five businesses and broaden our reach as leaders around the world face increasingly complex market, economic and geopolitical issues,” Teneo CEO Paul Keary said. “We have ambitious plans for growth in 2023 and beyond.”
Grant will become chair of Teneo’s U.K. strategy and communications business after the deal, according to the statement. Tulchan managing partner Andrew Feldman will become vice chair.
The deal marks the latest step in consolidation in the PR industry as firms seek a global presence. WPP Plc-backed public relations firm Finsbury Glover Hering agreed in 2021 to merge with its U.S. rival Sard Verbinnen & Co. to create one of the world’s biggest corporate communications companies, now known as FGS Global.
Teneo competes with firms including Brunswick Group, which brought on dealmaker Byron Trott’s BDT Capital Partners as a shareholder in a 2021 deal valuing the firm at about £500 million, Bloomberg News reported at the time. Other rivals include FTI Consulting Inc. and Publicis Groupe SA’s Kekst CNC unit.
Teneo has been acquisitive in the past few years and has done about 15 takeovers since the firm was founded, including buying some restructuring businesses from KPMG last year.
Last week, Teneo named Geoff Morrell for a new position at the CEO advisory firm. The former BP Plc and Walt Disney Co. executive will be president of global strategy and communications.
Teneo is known for consulting with C-suite executives and boards around the world. Private equity firm CVC invested in the company in 2019, buying out BC Partners, a statement showed at the time.
Evercore Inc. advised Tulchan on the deal, which is expected to close later this month.
