Melbourne-based Mitchell Communication Group became Western Australia's largest media buying agency last week after acquiring Alan Matthew's Starcom joint venture but Starcom has no intention of fading away.
Melbourne-based Mitchell Communication Group became Western Australia's largest media buying agency last week after acquiring Alan Matthew's Starcom joint venture but Starcom has no intention of fading away.
Starcom MediaVest is planning to launch a wholly-owned business in Perth in order to retain current clients including Subway and Metcash after selling the joint venture it held with Mr Matthews.
Starcom chief operating officer Chris Nolan said the company, which is actively recruiting in Perth and will be fully operational in the near term, will fund its own office in Perth in order to ensure clients are catered for.
"Starcom is committed to providing the highest standard of service to our national clients which includes offering full service offices in each capital city," Mr Nolan said.
"We have decided to fund our own office in Perth to achieve this goal."
Mr Matthews, who has also entered into a five year employment agreement with the listed Mitchell Group as part of the deal, held the joint venture partnership with the US-based Starcom MediaVest agency following a management buyout.
Founded by media veteran Harold Mitchell, the local arm of Mitchell Group, Mitchell & Partners WA will be bolstered by $70 million in annual billings thanks to the acquisition reportedly worth $3 million in a cash and scrip deal.
Mitchell Communication Group chief executive, Stuart Mitchell described the acquisition as strategically significant.
"We expect this acquisition to add $70 million per annum to Mitchells' billings and see us become the biggest player in the WA marketplace," Mr Mitchell said.
"It further bolsters our management capacity and industry standing, allowing Mitchells to offer its clients superior strategy, great service and negotiate the best rates".
Full announcements below:
STARCOM TO OPEN WHOLLY-OWNED OFFICE IN PERTH
September 4, 2009
Starcom MediaVest Group will establish a wholly-owned business in Perth, following the sale of its share in the joint venture business run by local media executive Alan Mathews.
Starcom's key clients in Perth include Metcash and Subway, as well as a number of local clients.
"Starcom is committed to providing the highest standard of service to our national clients which includes offering full service offices in each capital city. We have decided to fund our own office in Perth to achieve this goal," Starcom Chief Operating Officer Chris Nolan said.
Starcom is actively recruiting in Perth and will be fully operational in the near term.
Mitchell Communication Group- Acquisition of Perth Media Agency
The Mitchell Communication Group ("MCU") has today announced the acquisition of the business of a Western Australian media buying agency, headed by Mr Alan Matthews.
The acquisition by MCU instantly elevates the Group to the position of Western Australia's largest media buyer.
Mr Stuart Mitchell, Chief Executive Officer, Mitchell Communication Group described the acquisition as strategically significant.
"We expect this acquisition to add $70 million per annum to Mitchells' billings and see us become the biggest player in the WA marketplace," he said. "It further bolsters our management capacity and industry standing, allowing Mitchells to offer its clients superior strategy, great service and negotiate the best rates".
The acquisition of the business will not involve any borrowings.
Further and as part of the acquisition Mr Alan Matthews has also entered into a 5 year employment agreement with the Group.