WCRS Management Takes 75% Stake From Havas
The management of London creative agency WCRS has signed a deal to buy 75% of the business from its parent company, French advertising giant Havas.
WCRS, which devised the high-profile 118 118 campaign, is held by Havas Arnold Worldwide Partners division. Under the agreement management will take a 75% share in the business, with AWP retaining the remaining 25%.
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.
Havas says that both parties believe that the deal will spur WCRS forward to achieve greater success, whilst Arnold retains a strong a presence in the ‘crucial’ UK market.
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.
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).
Garry Lace, chief executive officer of Grey London, recently 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).
WCRS: 020 7806 5000 www.wcrs.co.uk
Recent Related Stories from NewsLine Manns Joins Starcom MediaVest In Group Head Role PHD Restructures For More Integrated Approach To Clients Mediaedge:cia Appoints George As Managing Director
Subscribers can access ten years of media news and analysis in the Archive