WPP Group Plc.
) recently consented to acquire a Turkey-based agency, Manajans
Thompson Reklam Isleri A.S. The acquisition will be given effect
through the company's wholly owned subsidiary, JWT, an
international marketing communications company.
The completion of the acquisition is subject to regulatory
approvals. After the completion of the acquisition, the company
will own a 100% stake in Manajans.
Manajans was established in 1944 in Istanbul. The company
generated roughly TL 8.0 million in revenues for the year ended 31
December 2011. Gross assets for the same period were TL 8.6
million. The company has a client base consisting of Bayer, Nokia,
Shell, Turkcell and Ülker.
WPP Group's acquisitions and investments are all aimed at
expanding the company's operations in fast growing emerging markets
and enabling access to vast untapped markets in those regions. In
the first quarter 2012, the company made roughly 10 acquisitions in
new markets, 2 in consumer insight and 2 in other areas. These
strategic acquisitions represent a major competitive advantage for
the company and enhance its creative reputation and co-operation
among the Group companies. Going forward, WPPGY plans to spend
roughly £300 million annually on acquisitions.
The current Zacks Consensus EPS Estimates for WPP Group are
$5.62 and $6.29 for 2012 and 2013, respectively. The estimates
represent year-over-year growth of 4.52% for 2012 and 11.88% for
WPP Group operates in a highly competitive and fragmented
communication services industry. The groups major competitors are
large multinational communication services companies, regional and
national advertising and marketing service firms as well as newly
emerging media companies. This Dublin, Ireland-based advertising
and communications services provider competes with other industry
Interpublic Group of Companies Inc.
Omnicom Group Inc.
Publicis Groupe SA.
We currently maintain a 'Neutral' recommendation on WPP Group.
The stock also bears a Zacks #3 Rank, implying a short-term (1-3
months) 'Hold' rating.
INTERPUBLIC GRP (IPG): Free Stock Analysis
OMNICOM GRP (OMC): Free Stock Analysis Report
WPP PLC (WPPGY): Free Stock Analysis Report
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