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WPP Acquires Majority Stake in Brazilian PR Firm Ideal Group

Zacks Equity Research
Updated

Hill+Knowlton Strategies, a wholly owned subsidiary of advertising and marketing services giant WPP plc WPPGY acquired a majority stake in Ideal — a Brazilian public relations, advertising, digital and content firm — in an attempt to bolster its presence in the region ahead of the 2016 Olympics in Rio.

Also, WPP’s unit Ogilvy Public Relations acquired Brazilian public relations and digital content firm ConceptPR. Its impressive creativity and digital prowess will further boost Ogilvy PR and help it to deliver creative and effective communication programs in the Brazilian market.

Both acquirees are a part of the Ideal Group, a content creator and public relations firm headquartered in Brazilian capital Sao Paulo.

Ideal has an impressive clientele, which boasts big corporates like GE, Facebook, 3M, Nike, Dell, Spotify, Diageo, Whirlpool, AstraZeneca and Rio2016. Several of these, like GE, are existing clients of Hill+Knowlton.

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ConceptPR is small, 30-strong agency owned by Ideal Group, and will be integrated into the Latin American operations of Ogilvy Public Relations. The small agency will almost double Ogilvy's footprint in Brazil.

The Ideal Group started out as a traditional PR agency, but soon transformed its business model toward digital and content.

Thus, the deals are in sync with WPP's strategy of expanding its footprint in fast-growing sectors such as digital.

They will also fortify WPP’s dominant position and boost its creative and strategic capabilities in the Brazilian market, and further develop the advertising giant’s strategic networks throughout Latin America. In fact, the acquisitions almost triple the size of WPP’s Latin American operations, a region where the Group sees huge growth prospects over the next couple of years.

The expansionary deals follow recent additions of MarComms and public affairs in the U.S., and the creation of Group SJR Canada up north.

WPP presently carries a Zacks Rank #3 (Hold). Other stocks in the advertising and marketing services industry that are worth a look now include AirMedia Group Inc. AMCN, MDC Partners Inc. MDCA and TubeMogul, Inc. TUBE, all carrying a Zacks Rank #2 (Buy).

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WPP PLC (WPPGY): Free Stock Analysis Report
 
MDC PTNRS INC (MDCA): Free Stock Analysis Report
 
AIRMEDIA GP-ADR (AMCN): Free Stock Analysis Report
 
TUBEMOGUL INC (TUBE): Free Stock Analysis Report
 
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