In its concerted effort to augment its presence in Canada,
) recently acquired john st. - one of the leading creative
agencies in the country - for an undisclosed amount.
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Since its inception in 2001, john st. has carved a niche for
itself in the market as a premier creative agency in Canada with
an expertise in advertising, digital services, strategic
planning, integrated production, and account management services.
Based in Toronto, the company employs about 100 people with
revenues of approximately $14.0 million in 2012.
The acquisition would enable WPP to boost its presence in
specialized services such as media, direct and public relations.
The acquiree provides a comprehensive range of social media
services including social media strategy development, creative
frameworks, community management, content creation, social
application design and development, monitoring and analytics.
The company also has a dedicated team of digital service
professionals comprising information architects, web designers,
developers, producers and project managers. Consequently, the
acquisition is likely to offer unrivalled advantage to WPP to
consolidate its footprint in Canada.
On the other hand, with WPP on board, john st. will strive to be
one of the most innovative creative agencies in the world.
Through its operating companies, WPP offers a host of advertising
and marketing services including advertising & media
investment management; consumer insight; public relations and
public affairs; direct and digital promotion and relationship
marketing. The transaction, therefore, is a win-win deal for both
the participating companies.
Going forward, WPP expects to continue its acquisition binge to
spread its wings across the globe. In 2013, the company
anticipates a like-for-like revenue and gross margin growth of
around 3% and operating margin improvement of 0.5 margin points,
with a primary focus on revenue and gross margin growth at a
faster rate than the industry average. The company expects to
achieve it by its market-leading position in the new markets, in
new media, and in consumer insight.
At the same time, WPP should also remain wary of tough
competition from other players in the market such as
Clear Channel Outdoor Holdings Inc.
Publicis Groupe SA
AirMedia Group Inc.
). WPP currently has a Zacks Rank #3 (Hold).