Saatchi merger forms global unit

British-based Saatchi & Saatchi will merge two of its wholly owned subsidiaries to form an international agency network with annual billings of US$1.2 billion, making it the 17th largest group in the world.The merger will take effect Oct. 1.36 officesThe combining...

British-based Saatchi & Saatchi will merge two of its wholly owned subsidiaries to form an international agency network with annual billings of US$1.2 billion, making it the 17th largest group in the world.

The merger will take effect Oct. 1.

36 offices

The combining of the existing operations of Detroit-based Campbell-Mithun-Esty and khbb of London will give cme-khbb 36 offices worldwide.

The ‘hub and spoke’ framework of the new agency has been designed to allow cost-effective, consistent global brand management.

‘Hub’ offices

‘Hub’ offices will provide full service and ‘spoke’ operations and will adapt the campaigns for regional markets.

‘Hub’ offices will be located in Toronto, Chicago, Detroit, Houston, Minneapolis, New York, London and Paris.

‘Spoke’ locations will include Windsor, Ont., Vancouver, Los Angeles and 19 other markets in Canada and the u.s.

cme-khbb will be headed by William Dunlap, current chief executive officer of cme, as worldwide chief executive, and khbb Chairman Stuart Bull as European chief executive.

Michael Vogel, cme chief executive officer of the Detroit and Toronto offices, will continue in that post reporting to Dunlap.

In 1986, Saatchi bought Ted Bates Worldwide and its subsidiaries Campbell-Mithun and William Esty, merging the two units in 1988.

khbb was formed by the merger of kmp, Humphreys Bull & Barker, and Crawfords and Downtons in 1985. Saatchi bought the operation the next year.

Major cme clients in the u.s. include basf, Chrysler, DowBrands, General Mills, Kimberly-Clark, Pillsbury, Texaco and 3M.

Canadian account acquisitions include Little Caesar of Canada, 3M Canada, Kimberly-Clark and C.B. Fleet.

The KHBB client list includes Allied Lyons, Carlsberg, Federal Express, Reckitt & Coleman and Uniroyal. PS