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Tokyo, Japan, 2014/12/12 - Dentsu, Inc. announced that its global business headquarters Dentsu Aegis Network Ltd has reached an agreement with the principal shareholders of out-of-home agency OOH Plus Participações Ltda - Dentsu.co.jp. Tokyo: 4324
Dentsu, Inc. (President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today (December 11 Brazil time) that its global business headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of out-of-home agency OOH Plus Participações Ltda (Headquarter functions in Sao Paulo and Rio de Janeiro; hereinafter “OOH Plus”) to acquire the company.
Founded in 2010 as the holding company for Plusmedia Serviços de Marketing Ltda (founded in 1995), OOH Communicação Ltda (founded in 2005), and 2S Produções de Eventos Ltda (founded in 2007), OOH Plus is currently the largest independent out-of-home (OOH) agency in Brazil.
OOH Plus has strengths in one-stop communication services, ranging from the strategic planning and production of out-of-home advertisements, including digital OOH, to the procurement of advertising space and ad placement, unlike many other out-of-home agencies that focus on the procurement of advertising space.
To date the Dentsu Group has been providing a wide range of services to clients in Brazil through its full-service advertising agencies Dentsu Brazil, NBS and mcgarrybowen, as well as through its agencies that provide services in the digital domain: iProspect, Isobar, LOV, Amnet and Copernicus. Since out-of-home advertising had been handled by the full-service agencies, the acquisition of OOH Plus will greatly strengthen the Group’s presence in the out-of-home media market in Brazil.
Immediately prior to the closing, the OOH Plus agency group companies were merged into Plusmedia. Post-acquisition, the acquired company will be rebranded as Plusmedia Posterscope and incorporated into the Group’s Posterscope out-of-home network brand with the aim of further enhancing the brand’s strength and expanding business in cooperation and collaboration with the other Group companies in Latin America. This acquisition will increase the number of Dentsu Group employees in Brazil to more than 1400, and the number of clients to more than 100.
In its September 2014 worldwide advertising expenditure forecasts, the Group’s media communications agency Carat announced that ad spending in Brazil grew 7.1% in 2013. Out-of-home advertising spending showed a high growth rate of 21.8% and is expected to grow 12.0% in 2014.
The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending March 31, 2015 is expected to be minimal.
Profile of OOH Plus
Company Name: OOH Plus Participações Ltda
Headquarters: Sao Paulo and Rio de Janeiro, Brazil
Date of Establishment: August 2010
Shareholding Ratio*: Dentsu Aegis Network 100%•After acquisition has been completed
Gross Profit: BRL 15,715, 000 (year ended December 2013)
Representatives: Marco Antonio de Souza (Co-Founder and CEO)
Omar Sahyoun (Co-Founder and CFO)
Number of Employees: 60
Line of Business: Provision of communication services primarily in the out-of-home domain