Publicis Groupe acquires a majority stake in DPZ

Publicis Groupe has acquired a majority stake in DPZ, one of Brazil’sleading advertising agencies. According to the terms of the agreement, Publicis Groupe immediately acquires 70% of the new agency, and has the possibility of increasing its participation to 100% over the next two or three years. DPZ will retain its name and will operate within Publicis Groupe on a stand-alone basis.  The agency remains under the leadership of its three foundersRoberto Duailibi, Francesc Petit and José Zaragoza, and the management of current CEO Flavio Conti.

Founded in 1968, DPZ is one of the largest independent advertising agencies in Brazil with approximately 230 employees. The agency is headquartered in São Paulo, with offices in Rio, Brasilia and Vitoria. DPZ’s key clients include prominent international and local brands such as Azul Linhas aéreas (airline), Bombril (cleaning products), Campari, Coca-Cola, Itaú (banking), Sadia (food and beverage), Vivo (telecommunications). The agency has seen double-digit organic growth over the past three years, and DPZ’s 2011 revenue is expected to reach €40 M, with margins above those of Publicis Groupe’s average.

DPZ has received a long list of industry accolades, making it one of the most-awarded agencies in Brazil. Known for its innovative and irreverent style, the agency won its first Cannes Lion in 1972, and Brazil’s first gold Cannes Lion in 1975.  DPZ has also been repeatedly recognized at the Brazilian “Colunistas” award, the most important award within the Brazilian ad industry, as well as the “Cabore” awards (another very important national award). The agency’s well-established reputation illustrates its strong and lively creativity.

The history of DPZ is intertwined with the history of Brazilian advertising. DPZ has not only become an icon for the advertising industry in Brazil, but also a reference in Brazilian advertising for the rest of the world. During its 43 years of history, DPZ has participated in creating prestigious brands and some of the most memorable campaigns and characters of Brazilian advertising. DPZ has also served as a university for Brazil’s marketing community, as many of the country’s leading ad men and women initially trained at DPZ.

The acquisition of DPZ illustrates Publicis Groupe’s strategic commitment to expanding its operations in the dynamic Brazilian market and across Latin America. Today’s announcement is the fourth transaction for Publicis Groupe this year in Brazil, following the acquisitions of Tailor Made and GP7, as well as the increased participation (60%) in Talent Group.

According to the most recent ZenithOptimedia forecasts (April 2011), Brazil will have a 9.5% increase over the course of 2011, followed by 7.0% and 7.2% growth in 2012 and 2013 respectively. Brazil is growing fast and is expected to become the sixth ad market in the world in 2011. Brazil is already Publicis Groupe’s sixth largest market with nearly 1,500 permanent employees throughout the country.

Maurice Lévy, Chairman & CEO of Publicis Groupe declared, Our strategy is to strengthen our two pillars of growth: digital and fast-growing markets. Brazilalong with China are of utmost importance to Publicis Groupe. This acquisition is a key step of our expansion into this promising market. DPZs exceptional creativity and iconic status put Publicis Groupe in a stronger position to provide the very best to our clients and to attract talent and grow organically. We are proud that DPZ – after a thorough process –chose to join Publicis Groupe, and we are pleased to welcome the agencys management and teams on board.  We are committed to Brazil not only because of the exceptional growth of this important market, but also because it is a formidable reservoir of talent and a country of entrepreneurs with great brands and ambitious companies.

The founders of DPZ, José Zaragoza, Francesc Petit and Roberto Duailibi added, “We are very happy about joining Publicis Groupe and adding to its global reach and considerable resources. DPZ sees this association as a wonderful opportunity for both our teams and our clients, especially given the powerful resonance of the Publicis Groupe brand all over the world.”

France Paris & Brazil, São Paulo

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