Capital C & Kenna acquired by MDC

http://www.theglobeandmail.com/globe-investor/marketing-firms-target-us-under-mdc-ownership/article1819700/

Two Toronto-based marketing firms are eyeing a push into the U.S. after being acquired from a struggling income trust by the deep-pocketed communications holding company MDC Partners (MDZ.A-T14.760.261.79%).

MDC, which has been on a buying spree for most of the year, is announcing the acquisition Wednesday of a majority of both Capital C Communications Inc. and the direct-marketing company Kenna, from Newport Partners Holdings LP(NPF.UN-T0.25-0.01-3.85%) which is seeking to pay down debt.

Terms of this week’s acquisitions were not disclosed, but Capital C claimed about $20-million (Canadian) in revenue last year, while Kenna executives said its revenue was “north of that.”

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20101201_100726_2928

After examining various venture capital and personal investment options, Chapman and his fellow partners chose MDC for its model of allowing partner companies to run their own businesses without top-down interference. The deal actually sees Capital C's partners increase their own personal stakes in the company.

"MDC really lets entrepreneurs be entrepreneurs with full autonomy," Chapman said. "We can decide whether we want to crawl, walk or run."

Capital C has it roots in retail and experiential marketing, but has expanded to become more full-service with the addition of research and content creation divisions. With revenues last year reportedly around $20 million, clients include PepsiCo Food & Beverages Canada, Sun Life Assurance Company of Canada, Scotiabank, Nissan Canada, Andrew Peller Limited, Cineplex Entertainment, Unilever Canada, McCain Foods Limited and Maple Leaf Foods.