Chime Communications Sells 49% Of HHCL To WPP

Advertising and public relations company, Chime Communications, has announced it is to sell 49% of its Howell Henry Chaldecott Lury (HHCL) advertising agency to WPP.

WPP will pay £3.5 million in cash for the stake in HHCL, which will become part of WPP’s international Red Cell network. Chime will have the option of selling the remaining 51% in HHCL to WPP after 1 January 2004 and WPP may buy the remaining stake at any time if a competitor takes control of Chime.

Red Cell UK will be merged into HHCL and the combined business renamed as HHCL/Red Cell accordingly. It will operate from HHCL’s current premises in the UK.

HHCL’s main activities include the creative development of advertising and broader marketing communication campaigns; management of the production process; marketing, brand and communication strategy consultancy; studio production and creative development research. It acts for a number of blue chip clients including Unilever, Iceland and Food Standards Agency. It currently has 65 employees and operates from offices in London.

Commenting on the sale, Lord Bell, Chime’s chairman, said: “This deal fulfils the strategy for HHCL that we set out at the beginning of 2002. We believe that Chime will benefit by making HHCL part of the Red Cell worldwide network.”

“Red Cell is WPP’s fourth network and will be positioned as the first global hot shop. HHCL is the ideal UK partner for this concept. International clients need inspired strategic thinking and impactful creative work and these are the lynch pins of HHCL’s reputation.”

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