Blackhawk Network To Acquire Grass Roots For About £90 Mln Cash

(RTTNews) - Blackhawk Network Holdings, Inc. (HAWK) announced that it has entered into a definitive agreement to acquire Grass Roots Group Holdings Ltd for approximately £90 million (US$118 million assuming the current pound to dollar exchange rate) in cash. The closing of the transaction is subject to approval by the FCO which is expected within the next 30 to 120 days.

Blackhawk Network said the acquired Grass Roots Group entities are forecasting Adjusted EBITDA of approximately £11 million for full calendar year 2016. The acquisition will broaden the global capabilities of Blackhawk's incentives and engagement business.

The current Grass Roots shareholders comprise WPP plc and current and former management, all of whom are selling their shares in this transaction.

Grass Roots will operate as a subsidiary of Blackhawk. Matthew Howe and Jonathan Kenny, co-managing directors of Blackhawk's UK-based Europe operations, will lead the European operations of Grass Roots. Stewart Rigby, managing director, Blackhawk Asia Pacific, will lead the Asia-Pacific operations of Grass Roots.