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PALMER JARVIS AND DDB CANADA TO MERGE

Vancouver-based Palmer Jarvis Communications and Toronto-based DDB Group Canada yesterday announced their agreement in principle to combine the two agencies into a new company to be called Palmer Jarvis DDB. DDB approached Palmer Jarvis with the proposed merger about six months ago. The deal is expected to be concluded by mid-January 1998. Palmer Jarvis president and CEO Frank Palmer will become president and CEO of the new agency, which will offer services including public relations, database marketing, graphic design and production, sales promotion, event marketing, youth marketing and interactive services. "We're excited by the DDB vision, the international network and what it will mean to our clients to have access to some of the best marketing and communications talent in the world," said Palmer in a release. Norman Rigg, chairman of DDB Group Canada, said, "This is an excellent strategic fit, as the Palmer Jarvis approach reflects precisely DDB's operating philosophy." The new company will have offices in Toronto, Winnipeg, Regina, Calgary, Edmonton, Vancouver and Victoria. It will employ about 400 people and possess combined Canadian billings of over $200 million, putting the agency into the top five in this country. Palmer Jarvis' current clients include the Overwaitea Food Group, McDonald's Restaurants (Western Canada), Mohawk Oil, Insurance Corporation of BC, Manitoba Telecom Services, Sun-Rype and Tourism Vancouver. DDB Canada clients include Clorox, Digital Equipment of Canada, Heinz, Lever Ponds, Michelin and Wyeth-Ayerst. DDB Group Canada is the Canadian subsidiary of DDB Needham Worldwide Communications Group Inc., which is itself a wholly-owned subsidiary of Omnicom Group Inc. Omnicom's other Canadian holdings include BBDO Canada, TBWA Chiat/Day, McKim Media Group and the recently-purchased Harrison Young Pesonen & Newell Inc. Palmer Jarvis DDB will maintain a wholly Canadian-owned subsidiary ad agency to handle government and other accounts which have such an ownership requirement.

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