The two founders of Dublin-based Gallagher & Kelly Public Relations will become millionaires following the sale of the firm to international communications group, Cordiant, for an initial figure of £7.1 million (#9 million).
That price could rise to £12 million if the Irish firm meets performance targets between now and 2003.
The company was established in May 1999 by Mr Jackie Gallagher (34) and Mr Declan Kelly (32) who will share the bulk of the proceeds of the deal. A third shareholder, Ms Orla Branigan, will also benefit.
Gallagher & Kelly will become part of Business Communications International, a global business owned by Cordiant. It will work in partnership with Financial Dynamics, a British business communications consultancy.
Gallagher & Kelly's clients include Dell, Coca-Cola, Microsoft, Bank of Ireland, Aer Rianta, Analog Devices, Eircom Ireland and Eircell. It employs 13 people.
Mr Gallagher is a former Irish Times journalist and adviser to the Taoiseach, Mr Ahern. Mr Kelly worked as a journalist with the then Cork Examiner before joining Murray Consultants. Both men worked with public relations company Fleishman-Hillard Saunders (FHS) before leaving to set up their own business.
Cordiant is quoted on the London and New York stock exchanges. It was established four years ago following the demerger of the Cordiant Group into Saatchi & Saatchi and Cordiant Communications.
The sale of the Dublin company is the latest in a number of such transactions involving public relations companies. In February, Fleishman-Hillard, the international public relations firm, increased its shareholding in FHS from 41 per cent to 100 per cent at an estimated cost of £6 million. Managing director, Mr John Saunders, was the largest beneficiary of the sale. Industry sources said at the time that Mr Saunders held around 25 per cent of the company and stood to receive £2.5 million.
In July 2000, Ms Eileen Gleeson, special adviser to President Mary McAleese, sold her company FCC to Shandwick for a figure believed to be in excess of £3 million.
In October 2000, Drury Communications was sold to the international advertising and marketing group BBDO Worldwide for an estimated £6.5 million.
