Leading communications firm Ketchum, a division of
Omnicom Group Inc
), recently acquired German public relations (PR) agency
Brandzeichen for an undisclosed amount. Brandzeichen, which has
expertise in lifestyle, communications and social media, will
continue to operate under its existing brand and team. Ranked by
Pfeffers PR Ranking 2012 as the leading lifestyle agency, it
serves a wide range of industries like beauty, luxury,
automotive, and food and beverages.
The Brandzeichen acquisition is a strategic move by Ketchum,
which is looking to expand its already-strong brand
communications offering and deliver superior client service.
Brandzeichen also has a similar talent retention policy as
The acquisition is a win-win situation for both these companies.
Ketchum is one of the most diverse PR agencies in the world and
has built brands. With the acquisition of a creative brand agency
in Germany, Ketchum will likely strengthen its position in the
fourth largest economy. The acquisition will also facilitate
Ketchum to enhance its expertise and geographic coverage for its
The acquisition should also be accretive for the parent company
and enable Omnicom to build a diversified global presence.
Omnicom is one of the largest advertising, marketing and
corporate communications companies in the world. Omnicom has a
strong track record of winning new clients and receiving
additional deals from the existing ones. The company's business
mix is well diversified geographically and benefits largely from
the growing markets. In addition, the company's efforts in
maintaining controlled expenses and strong global reputation are
Omnicom currently has a Zacks Rank #3 (Hold). Other stocks that
look promising and are worth a look are
Huron Consulting Group Inc
Hill International Inc
), each carrying a Zacks Rank #2 (Buy).
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