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International Herald Tribune
By Eric Pfanner
17 June, 2005
Publicis Groupe, the Paris-based advertising and marketing company, said Thursday that it had agreed to buy a majority stake in Freud Communications, a London-based public relations firm headed by Matthew Freud, a great-grandson of Sigmund Freud.
The acquisition of Freud Communications, which specializes in promoting glitzy movie premieres and other celebrity-oriented events, will help Publicis expand its public relations portfolio, which also includes the company Manning, Selvage & Lee.
Publicis agreed in principle to acquire a 50.1 percent stake in Freud Communications, whose majority owner is Matthew Freud, for an undisclosed amount. Analysts said the deal would value the firm at close to ?50 million, or $91 million.
In 1994, Freud sold the company to Abbott Mead Vickers, a London advertising agency that was later acquired by the Omnicom Group, for ?10 million. In 2001, Freud bought the firm back in a management buyout.
The increase in value reflects Freud Communications' growth into new areas, including corporate communications work for clients like Sony Pictures Entertainment and Time Warner, along with consumer public relations for brands like Nike and Nestl?'s KitKat.
About two years ago, Freud opened an office in New York to help it service multinational clients.
The investment from Publicis might allow the company to move into additional cities.
"This puts us in position to be a bigger player in what is increasingly a global business," said Kris Thykier, the vice chairman of Freud.
Like other big marketing companies, Publicis has been expanding in areas like public relations as growth slows in traditional advertising.
Freud is a well-linked public relations executive whose connections extend beyond an illustrious ancestor. He is married to Elisabeth Murdoch, the daughter of Rupert Murdoch, the News Corp. chairman. Freud's sister, Emma Freud, is the longtime girlfriend of the film producer Richard Curtis.
While Freud and his lieutenants are a seemingly ubiquitous presence at star-studded events in London, Thykier said the company wanted to make further inroads into the more sober and lucrative world of corporate public relations.
Publicis recently moved its various public relations operations, which also include Publicis Consultants, under a more centralized management structure, reflecting their increased prominence.
"The addition of Freud Communications to the group will strengthen our consumer public relations capabilities, specifically through their broad expertise in consumer branding and entertainment marketing," said Louis Capozzi, who heads the Publicis public relations and corporate communications group. |
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