What: Agency Grey Group, from holding company WPP, has acquired a majority stake in Circus Peru S.A. for an undisclosed sum.
Why it matters: Grey Group’s regional division will be integrated into the Circus group of companies and the organization will be renamed “Circus Grey.” The acquisition allows Grey Group to increase its presence in the Latin American region particularly in Peru, a high growth market.
Advertising and marketing agency Grey Group has wrapped up an agreement to acquire a majority stake in Circus Peru S.A., the largest independent advertising agency in Peru, for an undisclosed sum. Grey Group belongs to holding global communications services company WPP.
Following the acquisition, Grey Group’s regional division will be integrated into the Circus group of companies and the organization will be renamed “Circus Grey.” Circus Grey will employ around 200 people and serve clients such as Procter & Gamble, Grupo Credito, Grupo Falabella, Claro and San Fernando, among others. Circus’ management team, led by Juan Carlos Gomez de la Torre, President and Chief Creative Officer, and Marco Milesi, CEO, will continue to lead the company.
Circus was founded in 2008.The agency is headquartered in Lima, Peru, where it operates as a full-service, integrated marketing company serving diverse clients in the Latin America region. The agreement includes its subsidiaries: Circus Interactive, Circus Retail, Circus Experience, Brand Lab, a design company, and Carne, a second advertising agency.
So far this year, WPP has completed over 20 acquisitions worldwide . Of these, 13 acquisitions and investments were made in new markets and 16 in quantitative and digital industries.
By partnering with Grey Group, Circus gains a a strong access to rich data analytics and cutting-edge technology of its parent company WPP.
“I have known and worked with the principals of Circus and watched as they’ve built this impressive agency. This merger will give Grey a stronghold in one of Latin America’s most dynamic economies and our network, will in turn, empower Circus to serve Grey’s multinational clients on a regional scale,” Alain Groenendaal, President and CEO of Grey Latin America, said.
So far this year, WPP has completed over 20 acquisitions worldwide . Of these, 13 acquisitions and investments were made in new markets and 16 in quantitative and digital industries. WPP seeks to increase the share of digital revenues in its total sales to 40–45% in the next 5 years, up from its current share of about 35%, according to zacks.