Acquisition
WPP Group PLC
19 October 2006
For Immediate Release 19 October 2006
WPP announces four acquisitions in Asia
Two in the BRIC* markets of India and China and two in South Korea
WPP today announces four acquisitions in Asia - two in the strategic BRIC
markets of India and China and two in South Korea - in a move which underlines
the Group's long-standing commitment to the dynamic Asian region.
In India, WPP has taken a majority stake in Bangalore-based Ray + Keshavan
Design Associates Private Limited, a leading Indian brand identity and design
agency. Founded in 1989, the agency, which employs 33 people, has developed a
blue-chip client portfolio that includes Airtel, Hindustan Lever, Infosys, Kotak
Mahindra Bank and Wipro. Revenues for the year ended 31 March 2006 were Rs
58.2 million with gross assets of Rs 40.2 million at the same date.
In China, WPP's wholly-owned operating company, Ogilvy & Mather Worldwide, the
global advertising and marketing communications network, has acquired, subject
to regulatory approval, 70% of the share capital of Beijing Century Harmony
Advertising Co. Limited, a leading internet advertising agency in the People's
Republic of China. Based in Beijing with a branch in Shanghai, the five year
old company employs 93 people. It had unaudited revenues of CNY 13.6 million
for the year ended 31 December 2005 with gross assets of CNY 25.9 million at the
same date. Clients include ICBC, Li Ning and Yahoo China.
In South Korea, WPP's wholly-owned operating company Wunderman, the global
customer-focused marketing communications network, has agreed to acquire the
businesses of SRP Corporation Limited and ComHaus Korea Limited, both marketing
services companies. Seoul-based SRP, founded in 2002, employs 12 people.
Revenues for the year ended 31 December 2005 were US $0.5 million with gross
assets of US $0.4 million at the date of acquisition. Clients include
Microsoft, Adobe, EMC Computer Systems, CISCO and Seoul Metropolitan Government.
ComHaus, also based in Seoul, was founded in 2000 and employs 10 people.
Revenues for the year ended 31 December 2005 were US $0.7 million with gross
assets of US $0.4 million at the date of acquisition. Clients include Microsoft
and Softbank.
These acquisitions continue WPP's strategy of developing its networks in fast
growing markets and sectors. In the case of Century Harmony, this move
continues the Group's regional strategy in mainland China. Greater China is one
of the fastest-growing markets for WPP, providing the company with the highest
amount of revenues from this region amongst its competitors. Consequently, the
Group, which employs 7,000 professionals in Greater China, has a strong
relationship position in the region - as it does in Asia overall - across all
advertising and marketing disciplines.
(*The BRIC markets - Brazil, Russia, India and China - were identified by
Goldman Sachs in its Global Economics Paper No.99, 2003, as key drivers of
economic growth in coming years.)
Contact:
Feona McEwan, WPP (London) +44 (0)20 7408 2204
www.wpp.com
This information is provided by RNS
The company news service from the London Stock Exchange
LFVDIFLTLIR
Latest directors dealings
- 2 minutes ago Prudential
- 14 minutes ago Vanquis Banking Group 20
- 2 hours ago Frasers Group
- 2 hours ago Cavendish Financial
- 2 hours ago Diaceutics