Two Groups Grow Offshoots by Internal Merger

18 January 2001

In separate moves, two major agency groups are merging subsidiary companies to form larger entities.

In London and New York, Interpublic’s Lowe Group is melding Winston-Salem shop Long Haymes Carr with Mullen in Wenham, Massachusetts and Detroit. The resultant hybrid, rebranded Mullen/ LHC, will employ over five hundred staff with billings of around $420 million.

Heading the new agency is Mullen president and chief executive Joe Grimaldi, 49, while LHC chairman and chief executive Steve Zades, 42, will take an unnamed position when integration of the two shops is completed. There will be no layoffs resulting from the merger.

Elsewhere, Bcom3-owned Leo Burnett Public Relations, sited at thirteen locations and earning $15 million in fee revenues, is to be absorbed by its larger sibling Manning, Selvage & Lee. The combined outcome will be a PR shop with one hundred offices and affiliates worldwide and over $100m in revenues.

News source: New York Times