Share Dealing
Blue Chip Bulletin: WPP acquires Ogilvy South Africa
Joe McGrath, 27 January 2011
Martin Sorrell’s WPP has continued its strategy of expanding into emerging markets by acquiring the majority interest in corporate communications agency Ogilvy South Africa.
Ogilvy SA has offices in Cape Town, Durban and Johannesburg, employing more than 700 people with a long list of blue chip clients such as BP, SAB Miller and Kentucky Fried Chicken.
The company’s consolidated revenues for the year ended 31 December 2009 were £36.6 million (ZAR 411.7 million), with gross assets at the same date of £37.5 million (ZAR 422 million).
WPP now employs more than 20,000 people in Africa, generating combined revenues of £314.6 million (US $500 million).
These latest initiatives follow last year's announcements of Ogilvy's joint venture with African marketing services company, Scangroup, in sub-Saharan Africa and the expansion of the TNS Africa network through the acquisition of a majority stake in RMS in West and Central Africa.
The South African full service agency operates in a range of marketing disciplines including advertising, digital, activation, promotions, customer relationship management, public relations and relationship marketing.
Earlier today, Reuters reported that WPP is planning to increase headcount by four per cent this year globally on the basis of corporate growth of between 3 and 4 per cent.
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