WPP GROUP BUYS GREY GLOBAL
By Adnews Staff
WPP Group is preparing to purchase Grey Global Group for $1.52 billion in cash and stock. The deal is expected to close by the end of the year. Grey's advertising agency business will run as an independent unit within WPP, according to the company. Grey's clients include Procter & Gamble, 3M, Adobe, Conagra, Hasbro, Mars and Warner Bros. Ed Meyer, chairman, president and CEO of Grey Global, will remain chairman and CEO of the unit. He will also be CEO and chairman of Grey Worldwide until a successor is appointed approximately six months after the deal is completed. After that, Meyer will take a position on the board of WPP. Martin Sorrell, group chief executive of WPP, said, "The addition of Grey Global Group to WPP will bring a number of benefits to our clients, our people and our shareowners. In addition to broadening our relationship with a number of our leading clients, Grey will bring access to new clients, strengthen our activities in advertising, media investment, management, public relations, healthcare and direct and interactive." WPP's clients include Nokia, Pfizer and BAT.