Cossette buys London ad agency MCBD
By Adnews Staff
Cossette Communication Group has purchased UK-based advertising company MCBD and its subsidiary Elvis. As the first part of the six-year, three-stage deal, Cossette has acquired a 51% interest in the London company for approximately CND$16.8 million. The second and third stages of the deal will allow either party to trigger Cossette's acquisition of the remaining 49% under a number of different circumstances, with the purchase price to be determined by financial performance. MCBD, which has a staff of 100, offers planning and advertising services. Its subsidiary Elvis provides direct marketing and sales promotion. According to the company, MCBD had total billings of approximately CND$57.4 million in 2005. Its clients include BBC Worldwide, Cadbury, Debenhams, Diageo, Carnival Cruises, the Metropolitan Police, Mitchells & Butlers, Tetley Tea and the British Government among others. The firm's three principals, Jeremy Miles, Helen Calcraft and Paul Briginshaw, will remain with the company. "Today's acquisition reinforces Cossette's stated strategy, which calls for penetrating new geographic markets and building a mid-size network to offer services to clients with international communication needs," said Cossette CEO Claude Lessard. "This acquisition confirms our commitment to the UK market and rounds out our platform by adding advertising, sales promotion and direct marketing to branding, design and public relations." Cossette has purchased two other companies in London within the last two years: branding agency Identica and public relations firm Band & Brown Group.