Cash windfall for PR firm Financial Dynamics' owners

Shareholders in public relations (PR) group Financial Dynamics are due a multi-million cash windfall after agreeing the sale of the firm to US company, FTI Consulting.

One of the two most senior beneficiaries in the sale is Declan Kelly, who began his PR career in Dublin but is now chief executive of the US arm of Financial Dynamics. He is likely to have secured a good deal more than £10 million (€15 million) under the transaction.

The Financial Dynamics group, which has a Dublin office, is being sold for up to £180 million (€264 million), with 160 managers around the world in line to share about £102 million of this sum.

As a group, management owns 57 per cent of the company, with the remainder controlled by private equity firm, Advent.

The sale agreement values Financial Dynamics at £110 million on a current basis after £27 million of debt. An additional £42.5 million will fall due over the coming five years if certain financial targets are met.

Mr Kelly, who has signed a long-term contract with FTI, shared €15 million in 2001 when his co-owned PR company Gallagher & Kelly was sold to Financial Dynamics. Two years later, he participated in a £26 million management buyout of the Financial Dynamics group.

Three-quarters of the proceeds now due to management will come in cash, with the remainder to be paid in guaranteed FTI stock. Advent is taking all of its proceeds in cash.

Mr Kelly will continue to run the Financial Dynamics business within FTI, along with London chief executive, Charles Watson. He will continue to base himself in New York.

Included in the Irish management team to gain under the latest deal are the six directors of Financial Dynamics in Dublin, led by managing director Paul McSharry.

Mr McSharry's fellow directors - Aisling Garvey, Niamh Lyons, Brendan Murphy and Niall O'Muilleor - will also benefit, although the extent of this has not been revealed.

A seventh Dublin employee, Maura Howe, also has a shareholding. Not all of the Irish holdings are equal.

The Financial Dynamics group is expected to have revenues of £66 million this year, with profits of about £16 million forecast. The Dublin business has a number of high-profile clients, including Vodafone and Coca-Cola.