WCRS, the agency that devised the high-profile 118 118 directory services campaign, is reported to be on the verge of agreeing a £20 million management buyout from French advertising network Havas.
It is understood that WCRS managers, who have been in talks to gain independence from Havas for some time, will buy a majority stake in the advertising company under an agreement due to be signed later this week.
According to a report in the Sunday Times, the deal will involve more than twenty of the current management team, led by Robin Wight, who will become chairman of the new company. WCRS founder, Peter Scott, will be joint chairman and Stephen Woodford will remain chief executive.
The deal will see the team secure majority control of the London-based agency with Havas retaining a minority holding. Financing is thought to have been raised by the management team with no venture capitalists involved. It is unusual in the advertising industry for a company to be bought out this way. Traditionally, larger advertising networks, such as WPP, Havas and Publicis, are the ones to buy up smaller independent agencies.
Following the completion of the management buyout, WCRS is expected to expand its range of activities. Reports suggest it could move in to public relations and design with a number of smaller acquisitions.
