WPP has acquired a 49.9% stake in Clemmow Hornby Inge (CHI) after the marketing services company broke off talks with Havas.
Although no figure for the deal was disclosed, it is rumoured in the trade press to be in the region of £15 million-£20 million.
Vincent Bolloré, chairman of Havas, said in February that he would be interested in acquiring a stake in CHI and this news will come as something of a shock to him.
CHI’s revenues for the year ending 30 June 2006 were £18.5 million, with gross assets at the same date of £17.7 million.
Its roster of clients includes Argos, British Gas, Britvic, Carphone Warehouse, The Telegraph Group and Toyota.
CHI was founded in 2001 by Simon Clemmow, Johnny Hornby and Charles Inge. Based in London, CHI employs 151 people.
Sir Martin Sorrell, WPP chief executive, said: We’re delighted to form a partnership with CHI. We have admired Johnny Hornby, Simon Clemmow, Charles Inge, Simon Hall, Warren Moore and their colleagues for many years.
“We think that the proposed structure gives CHI the chance to capitalise on WPP’s resources, whilst maintaining its independence.”
On Monday, WPP acquired a minority stake in VideoEgg, a company specialising in video solutions and video advertising for online communities (see WPP Acquires Stake In Online Advertising Company).
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