Andrew Neil consortium buys PFD for £4m

Andrew Neil

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Update: A consortium led by journalist and broadcaster Andrew Neil has acquired PFD for £4m – the same sum as its rebel agents reportedly offered last year in a blocked management buyout.

Neil and a small group of private City investors sealed the deal with CSS Stellar because of "the significance and value" of the backlist of the literary and talent agency, and because of the "vision" of its chief executive Caroline Michel.
 
In particular, Neil singled out her plans to build PFD's television and online business as part of a strategy to represent clients across all platforms. "It will offer a one-stop shop for talent," he said.

He added that the deal represents good value for money, and reflects the knocks to PFD's value over the last 12 months. "We like to think it is a good price. PFD's been through the wringer as you know so it was bound to reflect that. It's a good business opportunity for us."

Michel said today that there has been "interest from other sectors" in buying PFD, but that Neil's background was the best fit with the company's cross-platform strategy. She would not comment on whether his was the highest offer.

His consortium will pay £3.75m on completion of the deal, with the balance of £0.25m due in 2011 dependent on PFD's earnings over the next three years. The sale must be approved by CSS Stellar's shareholders at an Extraordinary General Meeting on 7 July.

Provided it goes through, Neil will become chairman of the agency and will deal with "legacy issues" whilst Michel focuses on building the business across all platforms.

He would not disclose details of what the legacy issues are, but they are thought to include disputed payments to former PFD staff who have left the company for United Agents. "There are people who owe us money and naturally we want to recover that," Neil said.

The acquisition follows months of controversy for PFD. The majority of its agents left at the end of last year to set up a new breakaway outfit, United Agents, after CSS Stellar repeatedly rebuffed their proposals to buy the company.

The agents were further angered by the appointment of its chief executive Michel, who began her career as a literary publicist and then publisher, and is a less experienced agent than many PFD staff.

Michel confirmed that Neil's consortium is paying the same sum as the rebel agents offered in their proposed management buyout, but pointed out that the company had then been worth twice as much. "It was double the size and there were offers on the table at the time that were double what [the agents] were offering."

In a statement she added: "This is the turning over of a page and the beginning of a new chapter. We are all thrilled at today's developments and welcome Andrew, his energies - and the experience of his investors - to the team."

Neil said: "The combination of PFD's strong backlist and impressive new pipeline, the talent and dynamism of Caroline and her team together with the company's exciting new concept for building the business across all media, means that PFD, a well-loved and respected agency, can look forward to a future of security, growth and prosperity."