WCRS Close To Finalising £20 Million Buyout From Havas
WCRS, the agency that devised the high-profile 118 118 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. Money for the deal is thought to have been raised by the management team with no venture capitalists involved.
News of the buyout follows the agency’s success with the long-haired, moustachioed runners who achieved cult status through promoting The Number’s 118 118 directory enquiry service, which was one of last year’s most successful campaigns (see 118 118 Runners Finish First In Ads That Make News Survey).
It is unusual in the advertising industry for a company to be bought out this way. Traditionally advertising networks such as WPP, Havas and Publicis normally buy up the small independents.
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.
Earlier this month Garry Lace, chief executive officer of Grey London, predicted that the next five years would see the creations of many more privately-owned agencies and privately-owned networks. Speaking at ISBA’s annual conference, he said: “The holding companies have traded too much on price and not invested in people and talent, they will not be able to sustain all the networks they run” (see Privately Owned Agencies To Make a Strong Comeback).
This morning it emerged that Lace has left the agency following rumours that he planned a secret business venture to launch his own loyalty scheme. His departure has triggered a shake-up of the management team which will see executive creative director, Dave Alberts, appointed to the new position of chairman.
WCRS: 020 7806 5000 www.wcrs.co.uk
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