Snyder buying Clinical in stock and debt deal

Maryland Watch

August 28, 1998

Bethesda-based Snyder Communications Inc., which develops marketing programs for large companies, agreed to buy closely held Clinical Communications Group for $108 million in stock and assumed debt to expand its services to drug companies.

The acquisition, expected to close in the third quarter, will add to Snyder earnings in 1998 and 1999. None of Greenwich, Conn.-based Clinical's 140 employees will lose their jobs, said Snyder spokesman Fielding Dupuy. Clinical had 1997 revenue of about $20 million, said Fran Blechman Bernstein, a Merrill Lynch & Co. analyst.

Snyder, with 1997 revenue of $333.4 million, helps its pharmaceutical clients sell drugs after they receive regulatory approval. The acquisition will give Snyder the resources to prepare marketing strategies before drugs are approved, Bernstein said.

She said Clinical will add 1 to 2 cents a share to Snyder's 1998 and 1999 earnings.

Snyder, which helps clients in a wide variety of industries market their products, bought 12 companies last year and five so far this year.

Snyder shares fell $4.625 to $35.875.

Pub Date: 8/28/98

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