Edelman and Rowland deal rumored to be in the works

NEW YORK: Edelman is nearing a deal to add Rowland Communications Worldwide to its arsenal, sources told PRWeek last week.

NEW YORK: Edelman is nearing a deal to add Rowland Communications Worldwide to its arsenal, sources told PRWeek last week.

NEW YORK: Edelman is nearing a deal to add Rowland Communications

Worldwide to its arsenal, sources told PRWeek last week.



The news that Edelman was negotiating with Rowland parent Saatchi &

Saatchi was not in itself a surprise, given Edelman’s status as the

biggest global firm not owned by a multinational communications

conglomerate. That Edelman was in discussions as a potential buyer

rather than a seller, however, raised eyebrows within the industry.

’It’s quite an aggressive move, especially with all the talk about

Edelman selling,’ said one source.



Saatchi & Saatchi spokesman Alex Sandberg confirmed that parts of

Rowland were on the block, but refused to identify the likely buyer: ’We

are in talks about the future shape of the company and a realignment of

some of the offices around the world.’



However, S&S is unlikely to completely divest itself of the company and

its holdings. Sandberg said that shared Rowland and S&S clients - like

DuPont, which handed the company an dollars 80 million integrated

account last year - would be retained.



Rowland Communications Worldwide houses two operations: integrated

marketing arm S&S Rowland Communications and PR firm The Rowland

Company. Rowland Communications Worldwide recorded US fee revenue of

dollars 25.7 million in 1999, an increase of nearly 60% over last year’s

total of dollars 16.1 million.



Edelman president and CEO Richard Edelman offered a flat ’no comment’ on

the potential deal.



ROWLAND WORLDWIDE BY THE NUMBERS

Total 1999 worldwide revenue                          dollars 49,735,000

Total 1999 US revenue                                 dollars 25,664,000

Top Sectors

Industrial PR                                         dollars 12,543,000

Consumer products and services                         dollars 5,834,000

Healthcare/pharmaceutical                              dollars 3,767,000

Hi-tech/new media                                      dollars 2,946,000

Government/public service                              dollars 1,000,000

Source: Council of Public Relations Firms



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