NEW YORK, Sept. 20, 2018 /PRNewswire/ -- (NASDAQ:
MDCA) – MDC Partners Inc. (the "Company") announced today its
intention to explore and evaluate potential strategic alternatives,
which may result in, among other things, the possible sale of the
Company. The Company has not made a decision to pursue any
specific strategic alternative, and there is no timetable for
completing the strategic review process. This review process is
proceeding in parallel with the Company's previously announced
search to identify a successor CEO. There can be no assurance
that the Company will pursue or complete any specific action or
transaction. The Company does not intend to disclose developments
or comment further regarding its strategic review or CEO search
until such time as its Board of Directors has determined the
outcome of the process or otherwise has determined that further
disclosure is appropriate or required.
About MDC Partners Inc.
MDC Partners is
one of the most influential marketing and communications networks
in the world. As "The Place Where Great Talent Lives," MDC Partners
is celebrated for its innovative advertising, public relations,
branding, digital, social and event marketing agency partners,
which are responsible for some of the most memorable and effective
campaigns for the world's most respected brands. By leveraging
technology, data analytics, insights and strategic consulting
solutions, MDC Partners drives creative excellence, business growth
and measurable return on marketing investment for over 1,700
clients worldwide. For more information about MDC Partners and its
partner firms, visit our website at www.mdc-partners.com and follow
us on Twitter at http://www.twitter.com/mdcpartners.
This press release contains forward-looking statements.
Statements in this press release that are not historical facts,
including without limitation statements about the Company's beliefs
and expectations, earnings guidance, recent business and economic
trends, potential acquisitions, and estimates of amounts for
redeemable noncontrolling interests and deferred acquisition
consideration, constitute forward-looking statements. Words such as
"estimates", "expects", "contemplates", "will", "anticipates",
"projects", "plans", "intends", "believes", "forecasts", "may",
"should", and variations of such words or similar expressions are
intended to identify forward-looking statements. These statements
are based on current plans, estimates and projections, and are
subject to change based on a number of factors, including those
outlined in this section. Forward-looking statements speak
only as of the date they are made, and the Company undertakes no
obligation to update publicly any of them in light of new
information or future events, if any.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause
actual results to differ materially from those contained in any
forward-looking statements. Such risk factors include, but are not
limited to, the following:
- uncertainty as to whether any strategic alternative will be
pursued or, if pursued, consummated; uncertainty as to the terms,
value and timing of any such strategic alternative; and the impact
of any actions related to the strategic review process and/or any
strategic alternative on the Company's securities or its
business;
- risks associated with severe effects of international,
national and regional economic conditions;
- the Company's ability to attract new clients and retain
existing clients;
- the spending patterns and financial success of the Company's
clients;
- the Company's ability to retain and attract key
employees;
- the Company's ability to remain in compliance with its debt
agreements and the Company's ability to finance its contingent
payment obligations when due and payable, including but not limited
to those relating to redeemable noncontrolling interests and
deferred acquisition consideration;
- the successful completion and integration of acquisitions
which complement and expand the Company's business capabilities,
and the potential impact of one or more asset sales;
- foreign currency fluctuations; and
- risks associated with the ongoing DOJ investigation of the
historical production bidding practices at one of the Company's
subsidiaries.
The Company's business strategy includes ongoing efforts to
engage in acquisitions of ownership interests in entities in the
marketing communications services industry. The
Company intends to finance these acquisitions by using available
cash from operations, from borrowings under its credit facility and
through incurrence of bridge or other debt financing, any of which
may increase the Company's leverage ratios, or by issuing equity,
which may have a dilutive impact on existing shareholders
proportionate ownership. At any given time, the Company may
be engaged in a number of discussions that may result in one or
more acquisitions. These opportunities require
confidentiality and may involve negotiations that require quick
responses by the Company. Although there is uncertainty that
any of these discussions will result in definitive agreements or
the completion of any transactions, the announcement of any such
transaction may lead to increased volatility in the trading price
of the Company's securities.
Investors should carefully consider these risk factors and
the additional risk factors outlined in more detail in the
Company's 2017 Annual Report on Form 10-K under the caption "Risk
Factors" and in the Company's other SEC filings.
CONTACT:
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Investors:
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Erica
Bartsch
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SVP, Sloane &
Company (Investor Relations)
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212-446-1875
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ebartsch@sloanepr.com
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Press:
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Alexandra
Delanghe
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Chief Communications
Officer
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646-429-1845
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adelanghe@mdc-partners.com
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SOURCE MDC Partners Inc.