Paris is Buying
Paris-based Publicis is acquiring 49 percent of Burrell CommunicationsGroup, Chicago, a leading African-American marketing agency. Terms of thedeal were not disclosed.
Publicis is currently examining the possible acquisition of anHispanic-targeted ad agency in North America, according to ceo Maurice Levy.
Burrell has 30 years experience in selling to black Americans, whosecombined buying power is $392 billion, according to a recent report inTarget Market News. The agency hopes to expand its direct-marketing andInternet pitches in the music and fashion industries, either throughinternal acquisitions or by utilizing the resources of Publicis. Burrell’smajor clients include Coca-Cola, Kellogg Co., McDonald’s Corp., MobilCorp., and Procter & Gamble.
Advertisers are keen to work with ethnic marketers because they are betterequipped to develop targeted marketing, says Levy.
Burrell will operate “on an independent basis,” in the U.S., Levy said.Chairman and ceo Tom Burrell is required to remain with the company for atleast five years, according to terms of the deal.
The alliance should provide capital to support Burrell’s growth, which astatement called “especially important now, as both clients and competitorscontinue to grow through frequent mergers and acquisitions.”
Although he received offers from other ad agencies, Burrell says he decidedon Publicis because the agency ” is just getting going in the UnitedStates.” O
