SYDNEY: BMF, one of Australia's last great independent ad agencies founded by Matthew Melhuish and Warren Brown in 1996, has sold to new owners.
BMF has joined the Photon Group stable, for an up-front payment of $21.8 million and 600,000 Photon shares, plus deferred payments tied to performance targets.
Tim Hughes, executive chairman of Photon Group, said he first approached Melhuish and Brown in November last year, but negotiations didn’t take off until six to eight months ago. “We did the deal about five weeks ago,” he said.
BMF has been proudly independent since its inception, but CEO Matthew Melhuish said the agency’s continued growth – currently at 140 staff and counting – was beginning to take a toll on his and Brown’s personal finances.
“We need capital to fund opportunities,” Melhuish said. “We have been very proud of our independence, and one of the things Photon does is let you keep control of your company.”
Hughes said BMF’s independence and passion appealed to Photon. “We want to support their independence,” he said. “They don’t have to use any other company in our group – they can recommend whoever they think is best for their clients.
“Strategically, BMF provides a powerful complement to our existing integrated communications companies and significantly increases our presence in traditional advertising.”
First on the agenda, Melhuish said, will be recruiting more staff to work on the recently won $50 million Commonwealth Bank direct advertising account, while overseas expansion is also on the cards. Photon has helped The Leading Edge expand into the UK, bellamyhayden into Thailand and BWM into the Middle East. Asked which route he would be following, Mehuish said: “I don’t want to say too much.”
BMF snapped up the Comm Bank’s $50 million direct advertising account in July, joining US hotshop Goodby Silverstein & Partners on the bank’s roster. Other major clients include Meat & Livestock Australia, Lion Nathan, and Dairy Farmers.
The F in BMF, Paul Fishlock, left the agency in September 2003. Fishlock is now executive CD of The Campaign Palace.
Photon last month extended its part ownership of media strategist shop bellamyhayden to full ownership and its stable of 30-plus marketing services companies includes Love, The Leading Edge, Ad Partners, Kaleidoscope, Brass Tracks, The Bailey Group and a majority stake of BWM.
Photon Group shares currently sit at $6.28.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.