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|Interpublic Completes Acquisition in Russia|
Acquires Market Affiliates of IPG Global Agencies McCann, Mullen Lowe and FCB
New York, NY - December 8, 2015 - Interpublic Group (NYSE: IPG) announced today that it has acquired a majority stake in the Russian affiliates of the company's three global creative networks, McCann, Mullen Lowe and FCB, from ADV, its long-term partner in the country. The transaction represents a milestone in the two-decade operating history of Interpublic's agency brands in Russia by establishing the company's direct ownership and control in a market that is important to global clients. Russia had been the only top-ten GDP country where IPG did not have an ownership position in its global creative agencies.
"Russia remains a significant market for many of our largest global clients, as well as home to a growing number of local and regional clients," commented Michael Roth, Chairman and CEO of Interpublic Group. "For some time, along with our Russia partner ADV, we've been working on a plan for IPG to have a direct financial and operating presence in Russia with our fully integrated global agencies. Today's move strengthens our foundation for future growth in this market and positions our global integrated agency brands to better recruit, retain and develop top talent. With this acquisition, we see an opportunity to further invest in these agencies and expand their capabilities to support our clients in the region," Mr. Roth added.
Based in Moscow, a team of existing senior leaders including Elena Modina, CEO of IPG Russia, Eugene Radewych, Chief Creative Officer of IPG Russia, and Elena Krasnova, COO of IPG Russia, will oversee the newly-owned operations. McCann, Mullen Lowe and FCB networks will provide global oversight of their respective agencies in Russia.
Terms of the transaction were not disclosed.
Within Russia, ADV shareholders remain a minority owner in the creative networks and ADV will continue as IPG's affiliate partner for the company's other local operations, including IPG's media and marketing services units in Russia. "Both IPG and ADV look forward to continuing our long-term partnership in Russia," concluded Mr. Roth.
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