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2018-01-12 Time
Friday, January 12, 2018 3:54 pm - 6:54 pm
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The Saatchi Saatchi Company, a worldwide group of communications and consulting concerns based in Britain, announced yesterday that it had bought Backer Spielvogel, a fast-growing, seven-year-old New York-based advertising agency.


 


The purchase, the latest in a series of American acquisitions by Saatchi since 1982, will strengthen its hold as one of the world's largest advertising agency Online Cigarettes groups. Last year, Saatchi had billings of $3.03 billion and Backer Spielvogel had nearly $400 million.


 


The publicly held company, founded in 1970 by Charles Saatchi and his younger brother, Maurice, has long been regarded as one of the most innovative of British advertising concerns, both for its ad campaigns and for its strategy of growth. It has 92 offices in 54 countries. Steel, American Motors, Mercedes-Benz and Hiram Walker.


 


The purchase yesterday ''is the latest example of the Saatchis' desire to be the biggest by any possible measure you can name,'' said Charles G. Crane, an analyst for Oppenheimer Company.


 


The merger continues a trend of larger agencies buying smaller ones, leaving them as autonomous operating units in hopes of avoiding conflicts between their own clients and those of the subsidiary. Examples of such mergers include Ogilvy Mather's acquisition of Scali, McCabe, Sloves and the purchase of Campbell-Mithun by Ted Bates Worldwide.


 


Yesterday's acquisition calls for the six stockholders of the privately held Backer Spielvogel to get a down payment of $50 million in cash against an expected payment of 10 times the average after-tax profits in the three years ending March 31, 1992.


 


Alan J. Rothschild, Unterberg, Towbin, who has watched the quick rise of Backer Spielvogel, said that the sales price could ultimately amount to more than $100 million.


 


All six principals of Backer Spielvogel Marlboro Cigarettes Price have signed employment contracts with Saatchi and there will be no change in the management of the company.


 


Backer Spielvogel's client list includes NCR; Fisher-Price; Hyundai Motor America, the importer of the low-priced Korean car; Miller Brewing; Arby's; Campbell Soup; Helene Curtis Industries; Magnavox; Philip Morris, for Parliament cigarettes, and Quaker Oats.


 


The agency's rise has not been without its setbacks, and the account losses have included both Miller High Life and Lowenbrau beers from Miller Brewing, the agency's first big client. Both went to J. Walter Thompson. Merger Talks Denied


 


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