Glasgow-based communications agency Frame Group has been acquired by its management team.
The deal, led by joint managing directors Stephen McCranor and Keli Mitchell, will see management acquiring a majority stake, with existing shareholders Charlotte Street Partners remaining as a significant minority shareholder.
Outgoing owners Gary O’Donnell and Angus Walker bought the business from the estate of founder Alan Frame in 2008 and were later joined by finance director Roslynn Mackay.
After building its reputation for advertising, design and digital marketing, Frame teamed up with McCranor and Edinburgh’s Charlotte Street Partners nine years ago, in a joint venture that created a PR and content business within the group.
Frame’s PR business has since become a significant player in the UK market, ranking in PR Week’s largest 150 UK agencies report for the past four consecutive years.
Frame employs more than 60 people between its Pacific Quay headquarters and Edinburgh offices, with a client list that includes Diageo, SERCO, Topgolf, Virgin Hotels, ACCA, Vodafone, the Scottish FA and AGS Airports.
The combined turnover of both Frame businesses last year was more than £8m.
McCranor said: “Frame was quite early in adopting the integrated full-service approach, combining the creative and strategic might of a great ad agency with a PR and communications business, and this deal means that for the first time both companies will share the same owners, making our offering smoother and even more efficient.
“The team and I are grateful to Gary, Angus and Roslynn for the wisdom and guidance they gave us in recent years and for the opportunity to lead and now acquire the business.
“Malcolm and Andrew at Charlotte Street Partners were driving forces behind the start-up of the PR business and Malcolm continues to provide valuable support and advice.”
Mitchell said: “I’ve been a Framer for almost 20 years and the agency has never stood still – from the start-up days of Alan Frame to where we are now, as one of Scotland’s biggest and most exciting creative agencies.
“I look forward to working alongside Stephen and the team to set out the next chapter of Frame’s story.”
O’Donnell added: “Roslynn, Angus and I began a process of stepping back from the running of the business some time ago, so it was natural that a change in ownership would follow.
“An MBO was always our favoured exit, and we are delighted the senior team which has steered the company in recent times, will now also own it into the future.”
Frame’s MBO team was advised by Rav Singh, the former finance director of Engine UK and global chief financial officer of TLC Marketing, supported by business lawyers MBM and tax advisors Chiene + Tait.
Singh will join Frame as chief financial officer with immediate effect.
Independent law firm Harper Macleod advised the outgoing shareholders.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
