In Brief: MDC will be no more after Stagwell merger

Plus, 1Milk2Sugars adds to its leadership as client roster grows.
mdcpartners

MDC and Stagwell iron out shareholder disputes to approve merger

The MDC Partners name will soon be retired, as its merger with Stagwell is set to close after receiving shareholder approval.

Since it was first announced late last year, Stagwell’s offer has been revised multiple times in response to disputes with shareholders. In particular, Indaba Capital, which owns 12% of MDC stock, claimed the deal undervalued MDC and favoured investors from Stagwell, which is co-founded by Mark Penn, who was installed as MDC’s CEO when Stagwell took a stake in the company in 2019.

Last week, a second independent proxy concluded that it was in the best interest of MDC shareholders to vote in favour of the latest version of the deal. A key term of the new deal is that MDC shareholders will own 31% of the newly combined company, up from 18.5% in the initial proposal and 26% in a later revision.

The deal is expected to close “on or around” Aug. 2.

MDC Partners was founded in Toronto as Multi Discipline Communications in 1980 by Miles Nadal, who would leave in 2015 after an investigation by the SEC regarding his expenses and accounting practices. In the 2000s, MDC earned a reputation for acquiring buzzy, digital-friendly independents, starting with CP+B in 2001 and followed by the likes of Anomaly, 72andSunny and Forsman & Bodenfors in the ensuing years. Other MDC agencies in Canada include Union, Veritas, 6Degrees and Bruce Mau Design.

Client boom leads to promotions at 1Milk2Sugars

On the leadership team at 1Milk2Sugars, Ruth Goudie has been promoted to VP and general manager, responsible for overseeing culture, strategy, growth and operations. Meanwhile, Emma Cusson has been named the agency’s first creative director and head of partnerships, responsible for overseeing new business and elevating the agency’s creative.

In account services, 1Milk2Sugars has also promoted Amanda King to PR account director, taking the lead on several of the agency’s new accounts, while also focusing on mentorship, training and process improvement across the media relations and PR department. Siobhan Barrett has been promoted to senior account manager, strategy and integration, a new role at the agency that will work with the agency’s digital department to integrate and amplify its PR strategies. Lastly, Alexandria Horvat-Becevello and Alanna Ramgoolam have both been promoted to account manager, taking leadership on several new accounts.

New hires at the agency include Lindsay Sganga in the new role of social media content manager and senior account manager Taryn Segell.

The personnel changes are in response to a wealth of new business at the agency, which, since January, has included Schwarzkopf Professional, Babyfoot, Browns Shoes, Lowe’s Canada, Van Houtte, Clamato and Tums