WPP takes controlling 61% stake in STW Communications in Australia and New Zealand
STW Communications Group, Australasia’s leading marketing content and communications group, today announced it has entered into an agreement to merge with the Australian and New Zealand businesses of WPP.
As a result of the Transaction, WPP will become the majority shareholder of STW with a shareholding of 61%. The merged group will have pro forma normalised net sales of A$847 million and normalised EBIT of A$142 million.
Says STW’s Chief Executive Officer, Michael Connaghan: “WPP has been a fantastic partner since we came together to create Singleton Ogilvy and Mather in 1998. Since then we have had great success in Australia and New Zealand partnering in J Walter Thompson, Added Value, Mindshare and Maxus. I believe this deal makes great sense. To finally align our shareholdings in those existing partnerships and now to expand our relationship across the full STW and WPP Australia and New Zealand portfolio of companies is an amazing opportunity.
“WPP is the leading player on the global stage in our industry. We have the potential to create a group unparalleled in this part of the world, totally focused on our home markets, but allowing our clients and people open access to best thinking on a global level.”
WPP’s Chief Executive Officer, Sir Martin Sorrell (pictured), said: “Australia and New Zealand is our fifth largest market after the United States, the United Kingdom, Greater China and Germany. The merger of our Australian and New Zealand operations with STW, will give us a unique opportunity to offer our local and international clients a comprehensive set of services and to make sure we can offer the best talent through country management. It will also enable STW to focus on the Australian and New Zealand markets, which it knows best, with a structure that will strongly incentivise its people.”
6 Comments
To all those soon to be WPP clients – get ready for your agency MD’s, GADs, CFO’s, Account Directors, Account Managers etc, spending more time preparing financial reports for WPP HQ than working on your business. You can’t believe how paralysing it is until you’ve lived through it.
You obviously haven’t worked for STW!?
Ironically I think it’ll be a good thing, STW have been driving businesses into the ground with their traditional backward business models and poor talent selection and total lack of ability to move on the hacks and dead wood that hide under the safety of the STW umbrella and the job for the boys philosophy!!? WPP will bring the neccesary rigor thats so lacking from most of the STW group…take Ogilvy for example, can’t win business!!?? And filled to the brim with hacks and led by knowbody!!??
STW WPP WTF LMAO FTS
@ Here it comes….if you are going to slag people off champ, at least learn how to spell it right. Obviously a fine career as a copywriter languishing in some unknown agency awaits you. Or maybe a business consultant to the marketing industry with your fine grasp of the business and financial performance of STW and their ‘backward business models’ over the last 10 years.
Finally, someone to reign in Ogilvy Australia. For decades they’ve operated as a separate entity and never been truly part of the O&M network. It’s good thing for the agency.
The survivors of the Titanic have just been airlifted into the Hindenburg…