Aegis aims to buy in China and US

John Napier, the chairman of media buying group Aegis, said today that it would use the £175m it plans to raise for acquisitions mainly on expanding in the US and China. Napier said that the new funding, which Aegis aims to raise through a convertible bond , would mean the company could return to the level of spending on acquisitions that it had sustained in the five years before the 2009 downturn. "We want to look at markets where we want to be stronger or geographically extend our footprint," he said. Napier said that Aegis would look to make deals of up to £50m. "We want to be big in China and we are underweight in the level of representation in the US. We are looking at a series of deals around the £40m to £50m mark and [maybe] one larger than that." Aegis's US operation has struggled, with revenues falling 17.9% year-on-year in 2009, and Napier admitted that there was "not necessarily an organic growth solution to getting a larger presence in the USA". Napier said that in 2009 Aegis spent £12m on acquisitions, after averaging about £100m a year for the previous five years, £60m to £70m on acquisitions and a "tail" of about £30m in earnout obligations. Aegis's move to raise about £175m was about getting back to that level, he said. However, he cautioned: "We are not anticipating reckless expenditure." Napier also ruled out any potential deal with Vincent Bollore, who controls a 29.9% stake in Aegis Media and is the chairman of the rival marketing services company Havas, saying that there were "no talks about a possible tie-up". Bollore, who last June finally gave up an aggressive campaign to get seats on the board of Aegis , has consistently been linked with making a move for Aegis in what the Frenchman has termed a "long love affair". "It is one of those love affairs that take place in the newspapers," said Napier. "I've not even had my hand held. I feel a bit disappointed. There is mischief always being made up about us and Havas." Napier also defended the 16 months it took to appoint a new chief executive, Jerry Buhlmann, arguing that Bollore's attempt to gain seats on the board had been an unwelcome distraction. "We were under attack from an aggressive minority shareholder," he said. "[Buhlmann] has the endorsement of the whole board – it is the best starting point. We [now] have a very positive relationship with Mr Bollore. He is fully aware of all the decisions made today. He is a man that needs to be respected and is an important shareholder in the company." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".