COSSETTE BUYS POST & PARTNERS
By Adnews Staff
Cossette Communication Group Inc. has purchased New York-based advertising agency Post & Partners. The deal is worth US$7.5 million in cash and stock up front, plus a future consideration to be determined according to the company's performance over the next four years. Post & Partners was founded in 1992 as Emmerling and Post. The company has over 70 employees and counts among its clients Amica Insurance, Citibank Student Loan Corp., Dassault Falcon Jet Corp., the U.S. Internal Revenue Service, the U.S. Coast Guard, Panasonic Personal Computer Co. and TD Waterhouse Securities. The full-service agency offers account planning, consumer advertising, business-to-business advertising, corporate identity, direct marketing and Web design services. The company brought in a gross income of US$10.8 million in 2000. Chief executive officer Peter Post, chairman and COO Frank Sampogna, president and creative director Steve Crane and executive vice president and director of media services Richard Lefkowitz will all remain in their current positions at the company, which will be renamed Cossette Post. "This new partnership is a clear turning point," said Claude Lessard, CEO of Cossette Communication Group. "It is a major step in Cossette becoming a truly North American communication company."
In related news, Cossette Communication Group this week announced a third quarter gross income of CND$33.3 million. This represents a 21% increase over last year's third quarter income of $27.5 million. Earnings before interest, taxes, depreciation and amortization were $5.7 million, down from $5.8 million during the same period last year. Net earnings were also down slightly, $3.3 million for this year's third quarter compared to last year's $3.4 million. François Duffar, president of Cossette, attributed the increase in gross income to business from new and existing clients, while citing the need for more staff and "the challenges posed by the shifting of marketing budgets between business units," as the main pressures on the company's profit margins.