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Publicis to acquire Bcom3

12 Mar 2002

French advertising company Publicis SA is buying U.S. rival Bcom3 Group Inc. for $3 billion in stock in a deal that would create the fourth-largest advertising group in the world. This will also create the world's second-largest media-planning group, by combining Bcom3's subsidiary Starcom MediaVest with Publicis' Zenith Optimedia Group.

Publicis and Bcom3 are currently the sixth- and seventh-largest firms in the advertising world.

The plans call for Bcom3 to be merged with Publicis by the end of June, to form a new Publicis that would rank fourth worldwide with combined revenue of $4 billion, behind only the Omnicom Group in New York ($6.9 billion); the Interpublic Group in New York ($6.7 billion); and the WPP Group in London ($5.8 billion).

Roger Haupt, CEO of Bcom3, will become Publicis' president and chief operating officer. Maurice Levy, will continue as chairman and chief executive officer of Publicis.

Dentsu, the leading advertising company in Japan, currently owns 21 percent of Bcom3, and would buy a 15 percent stake in the new Publicis. Publicis and also signed a partnership deal with Dentsu to take advantage of each others' offerings.

Bcom3 was formed in November 1999, when Burnett parent Leo Group merged with New York rival MacManus Group. It is the parent company of advertising agencies Leo Burnett Worldwide (famous for creating the Marlboro cowboy and the Pillsbury Doughboy), D'Arcy Masius Benton & Bowles and media company Starcom MediaVest Group.

Publicis is the parent company of advertising agencies Fallon Worldwide, Saatchi & Saatchi and media company Zenith Optimedia Group.

Source: AdWeek