WPP Buy Buchanan And Create Mindshare

WPP has agreed to buy Cockpit Holdings Ltd. and its subsidiary Buchanan for an initial cash outlay of £4m. A further payment of anything up to £11m will be payed, the exact figure depending on the Buchanan’s profits over the next five years. This additional cost consideration will be satisfied 50 per cent in WPP ordinary shares and 50 per cent in redeemable loan notes. The acquisition of the London-based financial public relations company Buchanan strengthens WPP’s public relations activities in the UK.

Two of WPP’s sister agencies, J. Walter Thompson Company (JWT) and Ogilvy & Mather Worldwide (O&M) will merge to form the new company MindShare. WPP claim that MindShare will be an unrivaled media buying, planning and research company with access to combined billings of over £8.7bn. MindShare will initially operate in the UK and then move into European markets which will in turn act as a model for yet further development in Asia Pacific and Latin America.

MindShare aims to offer an integrated service covering “interactive media, sponsorship, event management, barter, programming, syndication, and media modelling” as well as media research tools. Dominic Proctor will become MindShare’s chief operating officer and chairman of MindShare UK. Mandy Pooler will be MindShare UK’s Managing Director.

WPP London: 0171 408 2204