WPPGY: Grey Acquires Stake in C&G - Analyst Blog
August 09 2011 - 7:30AM
Zacks
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).
INTERPUBLIC GRP (IPG): Free Stock Analysis Report
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WPP GRP PLC (WPPGY): Free Stock Analysis Report
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