BUENOS AIRES: Interpublic inched even closer to gaining a stronghold in Latin America last week as it neared a deal to buy Nueva Comunicacion, the region’s biggest PR agency, for more than dollars 20 million.
BUENOS AIRES: Interpublic inched even closer to gaining a
stronghold in Latin America last week as it neared a deal to buy Nueva
Comunicacion, the region’s biggest PR agency, for more than dollars 20
The deal, which will likely be completed this week following nearly a
year of back-and-forth negotiations, will see the global communications
conglomerate buying a majority stake of up to 80% in Nueva, an agency
with fee income of dollars 10 million last year.
Although Nueva officials would not confirm or deny the deal, one
high-placed source said Interpublic will pay well over dollars 20
million for the agency. That would be by far the highest sum ever paid
for a Latin American PR firm.
Interpublic’s interest in Nueva comes as little surprise. The agency
boasts top-notch media relations and lobbying capabilities, as well as
excellent connections to the new Argentine government. It has also
developed a network of 20 PR agencies in the region and Europe that
enables it to operate as a regional multinational. In the Argentine
market alone, Nueva is three times the size of its nearest competitor,
Nueva’s recent triumphs include landing Spanish/Latin American phone
giant Telefonica earlier this month - an account valued at nearly
dollars 2 million. The agency has more than 80 active accounts as well
as the biggest crisis practice in Argentina.
The architects of the deal were Larry Weber, founder and CEO of
Interpublic’s Weber Group, and Cesar Mansilla, Nueva’s owner and a
veteran of the Latin American PR scene.