DUBAI
The UAE operations of UK’s PR and corporate consultancy Bell Pottinger is to be acquired by Hanover M.E. The Bell Pottinger UAE name will now cease to exist.
The acquisition will add 14 consultants to Hanover’s EMEA (Europe, Middle East and Africa) team of 125 and take its 2018 fee income to over £20 million (Dh97 million). Hanover specialises in strategic consultancy advice in financial services, health care, tech, media and telecom. It also maintains a separate sports creative agency, The Playbook.
The sale was negotiated by BDO LLP, the insolvency firm acting as administrator for Bell Pottinger Pvt. Ltd., the parent entity. It was in September that the latter went into a free fall after a PR industry watchdog found fault with some of its activities related to a client in South Africa.
Just after the crisis blew up, the UAE operations of Bell Pottinger let it be known that these operations were unaffected by what was happening in the UK. And that a new ownership will be announced.
This is what is being effected now. Hanover M.E. will now acquire the shares of Bell Pottinger M.E. in Dubai and its operating licence in Abu Dhabi. The former is a subsidiary of Hanover Group, a corp communications and public affairs consultancy and offices in London, Brussels and Dublin.
Bell Pottinger’s local clientele includes Abu Dhabi’s master-developer, Aldar Properties. “Bell Pottinger Middle East is a terrific business with a talented, professionally run team which presents a strategic opportunity for Hanover to supercharge its growth in the region,” said Hanover chief executive Charles Lewington in a statement.
Following the deal, Hanover M.E. managing director Jonty Summers will retain the title of the combined business, while Archie Berens becomes chairman. Berens was overseeing the local operations after the crisis erupted in September.
“Hanover is an award-winning consultancy and incredibly well run, and we are looking forward to an exciting future together,” Berens said.
There were other contenders for the Bell Pottinger UAE stake, but it was felt by the interim management there would be more of a strategic fit with Hanover. The premises in Abu Dhabi and Dubai will be retained post the transaction.
There have been quite a few deals in the UAE/Gulf media and communications sector in recent months. Many of these dealt with ad agencies acquiring digital assets, such as that done by Grey Worldwide of hug digital. There was another involving the home shopping network Citruss TV, with a Chinese company picking up a majority stake.
