Valin Pollin Buys U.S. Carter Organisation

U.K. Public relations group Valin Pollin International Plc said it had conditionally agreed to buy the New York-based Carter Organisation Inc for up to 114.6 mln dlrs.

Initial payment will be 51.0 mln dlrs with further payments based on pretax profits over the three years to end-September 1990.

Carter is an investor relations, consultancy and proxy solicitation firm.

The first payment would be through the issue to the vendor, Chairman Donald Carter, of new Valin Pollin ordinary shares.

A total of 50 mln dlrs of these have been underwritten and the remainder will be retained by Carter.

In the year to end-1986 Carter made 16.0 mln dlrs on turnover of 35.41 mln on a pro forma basis after deducting the Chairman’s salary at the rate agreed for after the group is acquired.

Carter has more than 300 clients, with the largest 20 acocunting for about 45 pct of total turnover.

Valin Pollin said it also proposed to issue new ordinary shares, some of which will be issued for cash, to finance certain expenses of the deal as well as the final payment of 3.13 mln guilders for its Dutch unit, Valin Pollin Thomas and Kleyn BV.

Dealings in the company’s shares were suspended ahead of the announcement at 290p, and it said it expected trading to restart around the end of July.