Ludgate snapped up by McCann-Erickson

Advertising and marketing services group McCann-Erickson has heralded its intention to become a global PR player with the acquisition of financial and corporate PR firm Ludgate Group.

Advertising and marketing services group McCann-Erickson has

heralded its intention to become a global PR player with the acquisition

of financial and corporate PR firm Ludgate Group.



The deal, which was hammered out last Friday, sees McCann-Erickson

acquire 100 per cent of the company, including the 27.6 per cent stake

previously held by venture capitalists Granville Private Equity

Managers.



Both parties declined to disclose terms, although industry sources

estimate the deal to be worth over pounds 10 million. Ludgate’s

operating profits last year rose by 15 per cent to pounds 1.5 million.

Worldwide fee income reached pounds 10 million.



The company will become part of McCann-Erickson’s global PR interests,

Weber PR Worldwide, but will retain the Ludgate brand and operate

independently.



Ludgate chief executive Tim Trotter also becomes deputy chairman of

Weber PR Worldwide under chairman Larry Weber. His hi-tech agency Weber

Group was acquired by McCann-Erickson in December (PR Week, December

1996) and forms the core of the group’s emerging global PR network.



Weber said that McCann-Erickson’s goal was to be a top ten global PR

firm over the next five years with a capability in each of the main

sectors.



He added that McCann-Erickson would next turn its attention to

healthcare and public affairs and that it was already negotiating with a

UK-based agency.



’Our strategy is to find the best in a number of categories and Ludgate

gives our group a real global perspective in the financial PR and

investor relations field,’ said Weber.



The company recently brought its five UK regional PR agencies together

as McCann-Erickson PR.



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