Advertising titan, WPP plc’s (WPPGY) wholly-owned subsidiary, Grey has recently acquired additional shares in Campaigns and Grey Inc, thereby obtaining the majority stake in the latter’s share capital. Financial terms of the transaction were not disclosed.
Since 1994, the global advertising network of Grey Group had a minority stake in Campaigns and Grey Inc. (C&G), one of the leading Philippines' advertising agencies. C&G specializes in providing services in strategic planning, advertising, digital marketing, activation, public relations and advocacy communications.
The acquisition supports WPP Group’s efforts in expanding its operations in fast growing emerging markets and will enable the company to gain access to C&G’s key clients including AXA, Boehringer Ingelheim, Electrolux, GlaxoSmithKline, Procter & Gamble, Sara Lee, Sun Cellular and Wyeth Philippines.
Campaigns and Grey Inc.was founded in 1986 in Manila and employs over 93 people. The agency generated roughly PHP 254 million revenues for the year ended 31 December 2010. Gross assets for the same period were PHP 225 million.
According to a leading global media investment management operation, GroupM, advertising expenditure is likely to grow by 4.8% in 2011 and by 6.8% year over year in 2012 worldwide. Addition of new assets to the advertising portfolio will be helping the company leverage from the rising demand in the advertisement world.
The current Zacks Consensus EPS Estimate for WPP Group is $5.85 and $6.40 for the fiscal year 2011 and 2012, respectively. The estimate for 2011 represents a year-over- year growth of 56.37% and 9.46% for 2012.
Based in Dublin, Ireland, WPP Group plc provides advertising and communications services worldwide. The company faces competition from its peers like Interpublic Group of Companies Inc. (IPG), Omnicom Group Inc. (OMC), and Publicis Groupe SA (PUBGY.PK).
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