Next 15 in talks to buy Engine Group in the UK

Next 15 – the listed owner of PR agencies Archetype, MBooth, Outcast, The Brandwidth Group and Publitek – released a statement this morning following press speculation about the potential move.

Last summer, Engine’s owner, Lake Capital, formally started the process through which it hopes to sell its UK independent agency group. Lake Capital appointed the investment bank Lazard to handle the £100m auction and issued an information memorandum.

In a statement issued to the stock market this morning, Next 15 said it "notes the recent press speculation in relation to the potential acquisition of Engine UK".

"In line with its strategy, the company regularly assesses a number of potential acquisition opportunities at any given time. The company confirms that it is in discussions with Engine UK and its owners.

"Shareholders are advised that there can be no certainty that any transaction will proceed to completion or as to how any transaction would be structured.

"A further announcement will be made in due course, if appropriate."

A possible breakup of Engine had earlier been reported as a likely outcome of a sale.

Engine operates three divisions focused on advertising, digital and PR. In the past couple of years Engine has integrated its PR division – MHP and the consumer agency Mischief – into one entity, Engine MHP+Mischief.

Last week Engine MHP+Mischief was named Best Agency for Corporate & Financial Comms and the PRWeek Corporate, City & Public Affairs Awards.

News of a possible sale of Engine was reported on Sunday by Adweek.

Last month Next 15 reported that revenue grew 24 per cent in the fourth quarter of 2021 and for the year as a whole.

Engine declined to comment.

In APAC, Engine Group has a presence in Sydney and Melbourne.