Cheil Worldwide, the South Korean ad company, has announced it has signed a deal to acquire a “significant initial investment” in iris, the London-based agency network with clients including Samsung, Barclaycard and Adidas.
No further details have been given on the deal, but the investment will “potentially rise to 100% of the business” over the next five years.
In a statement, the two companies said the partnership begins with a “shared vision to create a genuine alternative to the traditional holding company model.” This will replace the relationship iris had with Meredith, the US-based publisher.
“Our goal was to find the right partner who could match our determination and drive,” said Daiki Lim, president and CEO of Cheil Worldwide.
“We’ve watched with awe how iris has built its global business and we are delighted to have this opportunity to work with their brand. Their membership in the Cheil Worldwide network will bring great value and agility to us and to our clients.”
Cheil is one of the world’s largest marketing agencies with 5,000 staff operating in 41 countries. iris, since its launch in 1999, has grown into a 1,000-strong global organisation, with 17 offices around the world.
Commenting on the move, Mark Williams, director, Results International, who acted as an advisor to Cheil, said the move was a “logical east meets west partnership.”
“Both have a reputation for innovation and creativity, producing work that is recognised and awarded globally. For example, Cheil’s virtual Tesco store in a Korean subway station captured the imagination of the marketing community and beyond.
“Both businesses take enormous pride in their creative output; visitors to any iris office or Cheil Korea HQ can see clear parallels in the way each makes its creative output the centrepiece of the agency.”
Ian Millner, joint chief executive at iris, added: “Over the last 16 years we have retained an entrepreneurial spirit that is engrained in our DNA.
“In looking for the next step forwards we have found a partner that matches our ambition. Together we will become a real force to be reckoned with, the type of agency group that will define the future of the agency model.”
