LEO GROUP AND MACMANUS GROUP MERGER CREATES BDM
By Adnews Staff
The Leo Group of Chicago and The MacManus Group of New York will merge to create a new holding company which, temporarily, will be called BDM. The new global advertising and marketing services company will be based in Chicago. Tokyo-based Dentsu Inc. will make an investment in the merged company and is expected to own 20 per cent. BDM will operate in 90 countries with 16,000 employees. The merger and Dentsu investment is scheduled to be complete by early next year. Plans for the new holding company may include a public stock offering, if market conditions are favorable. The Leo Group is the parent holding company for the Leo Burnett advertising firm, Starcom Worldwide, its media company, and a 49 per cent stake in London-based Bartle Bogle Hegarty. The MacManus Group is the parent holding company for D'Arcy, N.W. Ayer & Partners, Kaplan Thaler, and its media company MediaVest. All the agencies will continue to operate independently and will keep their names. Roger Haupt, incoming CEO of The Leo Group will become CEO of BDM. Roy Bostock, chairman and CEO of The MacManus Group, will become chairman. Richard Fizdale, currently chairman and CEO of The Leo Group, will become vice chairman and Craig Brown¸ COO of The MacManus Group will become president and COO of BDM. Dentsu will partner up with BDM in serving its clients located outside of Asia.