Omnicom Group's BBDO Worldwide has taken a majority 73.67% stake in Clemenger, meaning the agency is no longer Australian-owned.
The advertising group, which until now was 46.67% owned by Omnicom Group’s BBDO network and 53.33% owned by local management and staff, has traditionally made a big play of being locally controlled.
Omnicom said the acqusition will help fulfill its long-term strategic ambition to become the leading player in the Asia-Pacific region.
Clemenger Group includes ad agencies Clemenger BBDO, CHE, Colenso BBDO and half of media buying group OMD.
Robert Morgan, executive chairman of Clemenger said: “We believe this proposal will be a win, win - strengthening the ties between the businesses will dramatically enhance our group capabilities.
“We regard this move as a natural progression born of deep cultural respect and strong relationships at every level. The extremely strong affinity we share comes from knowing each other and successfully working together for many years."
John Wren, President and chief executive of Omnicom said: ““We plan to tap into Clemenger’s knowledge and expertise to help develop our business in the region.
“A key ingredient to this proposal is that we would like 25% of the company to remain in local ownership. A large element of Clemenger’s enduring success has been employee equity participation. We believe perpetuation of employee ownership
is fundamental to their success.”
The move comes two months after UK-listed Aegis Group made a $363 million friendly takeover offer for Mitchell Communication Group, as part of a strategic plan to increase the size of its footprint in the Asia-Pacific region.
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