International PR plans relocation to US HQ

International Public Relations (IPR), the parent company of Shandwick and Golin/Harris, is likely to move its headquarters to New York early in 1999, pending completion of its pounds 104 million all-share sale to US marketing group Interpublic announced last Friday.

International Public Relations (IPR), the parent company of

Shandwick and Golin/Harris, is likely to move its headquarters to New

York early in 1999, pending completion of its pounds 104 million

all-share sale to US marketing group Interpublic announced last

Friday.



Lord Chadlington, chairman and CEO of IPR said that the strength of the

group in the US is such, that the move could still be on the agenda even

if the deal does not go ahead.



He said: ’While we are the leading PR company in Britain, the real base

of our business has been in the US for five or six years. Sixty per cent

of our business is there, so much of our revenue and debt is in US

dollars.’



’Most of the international business is coming out of very high spending

US multinationals who want to have programmes run from one base. That is

where we should be.’



Half year results to 30 April 1998 show that the Americas generated 62.5

per cent of IPR’s worldwide revenues.



IPR’s worldwide PR fee income in 1997 stood at pounds 129 million and

Weber PR Worldwide’s at an estimated pounds 63 million following

acquisitions.



Combined income for the two groups as projected for 1998 stands at

around pounds 219 million, pounds 138 million of which is expected to be

generated in the US. On the basis of the projected fee income,

Interpublic will be the world’s second largest PR grouping after

Omnicom.



Both parties say that the brands will continue to operate

autonomously.



Leader, p9.



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