DDB Worldwide, part of Omnicom Group, confirmed Monday today that it has acquired Grupo ABC, the largest independent advertising and marketing communications group in Brazil. The transaction is subject to regulatory approval in Brazil and is expected to close by the first quarter of 2016.
News of the pending deal was first reported by Reuters last Friday. DDB did not disclose the terms, but Reuters reported that the agency paid approximately $270 million.
Grupo ABC’s group of agencies includes public relations, CRM, digital, promotion and events. Buyer and seller already have a working relationship — The ABC group has a network of agencies including DM9 (São Paulo), in minority partnership with DDB. DDB first invested in DM9 in 1997.
“Grupo ABC is widely acknowledged as an outstanding company with impressive creative work and expertise in a broad range of disciplines,” said John Wren, president and CEO of Omnicom. “Over the years, Grupo ABC have been great partners of Omnicom and their depth of talent will strengthen our business capabilities not only in Brazil but around the world.”
Brazilian advertising leaders Nizan Guanaes and Guga Valente, who will continue in their leadership roles, founded Grupo ABC in 2003.
"This partnership will further unite two companies that have long held the same values and creative ambitions,” said Chuck Brymer, CEO of DDB Worldwide.
Headquartered in Sao Paulo, Brazil, Grupo ABC has 30 locations and more than 2,000 employees serving clients such as Banco Itau, P&G, J&J, Ambev, Heinz, BR Food, Walmart, Mitsubishi, Vivo, Telefonica, among others.
Grupo ABC's network of agencies and marketing services companies now includes Africa, Loducca, Sunset, Newstyle and CDN, among others. The Group won 150 Lions at this year’s Festival of Creativity in Cannes.