Lake Capital Buys Engine Group in Effort to Create Agency Holding Group

http://adage.com/article/agency-news/lake-capital-buys-engine-start-agency-holding-group/294391/

hicago-based private equity firm Lake Capital wants to build an agency-services holding company, starting with the acquisition of London-based agency network Engine Group, whose portfolio includes Deep Focus, Noise and others.

"Our thesis is that pre- and post- the Omnicom-Publicis merger and lack of completion, there's a real opportunity to create a middle-market player in the space," said Lake Capital Co-founder Terry Graunke. He said the group considers mid-market to be an operation with $500 million to $2 billion in revenue.

Matthews International Agrees to Buy Schawk for $523.6 Million

• Matthews International’s $592 million purchase of publicly-traded agency and marketing services company Schawk at a valuation of 1.3x revenue and 11.1x EBITDA

Matthews International Corp. MATW -0.20% on Monday said it agreed to acquire brand-development company Schawk Inc. SGK -0.15% for $523.6 million in cash and stock.

http://online.wsj.com/news/articles/SB10001424052702303563304579445062301999616

Matthews  had $985.3 million in sales in its last fiscal year, the most in its history. The company has two major divisions, memoralization and cemetery/funeral home products (52.5 percent of revenue) and brand solutions (47.5 percent). SGK  had revenue of $442.6 million in the year ended Dec. 31, 2013. Combined, it totals about $910 million for brand solutions in the merged company, larger than the memorialization division.

Dentsu Aegis Plans to Acquire Experiential Agency MKTG for $52 Million

The move marks the Japanese ad giant's first U.S. acquisition since completing its acquisition of media and digital agency network Aegis last March. The deal is expected to close during the third quarter of 2014. Among MKTG's clients are Google, P&G and Diageo.

"It's about activating close to the point of purchase," said Nigel Morris, CEO of Dentsu Aegis Network Americas. "It's on strategy, we were really impressed with the management, and we can integrate it quickly."

http://adage.com/article/agency-news/dentsu-aegis-set-acquire-experiential-shop-mktg/293425/

• Dentsu Aegis Network’s $45 million acquisition of promotion agency MKTG at a valuation of 0.3x revenue and 12.8x EBITDA

CAA Acquires Experiential Marketing Group PGW

PGW, launched as Promotions Group West in 1998, also provides clients with a range of other marketing options covering lifestyle, guerilla, grassroots, mobile, event production and buzz and viral marketing services.

Terms of the acquisition of the 165-person agency, headed by Russ Jones, were not disclosed. Among the clients PGW worked with include ABC, McDonald’s, Paramount Pictures, MGM, Dreamworks, Wells Fargo, Washington Mutual, Disney, Fox Home Entertainment, BBDO, Dailey Advertising and the California Lottery.

http://www.adweek.com/news/advertising-branding/caa-acquires-experiential-marketing-group-pgw-158509

Merkle Acquires Rimm-Kaufman Group For Its Data-Driven Talent As A Media Agency

The acquisition adds about 220 RKG employees to Merkle's 2,200, including RKG president Adam Audette, co-founder and chief marketing scientist George Michie, and CEO George Gallate.

RKG will continue to support clients as a stand-alone company, for now, but the long-term plan is to build out an integrated platform beginning in 2015, per Michie, who made it clear in the past that the company wasn't looking for a new owner.

http://www.mediapost.com/publications/article/229252/merkle-acquires-rimm-kaufman-group-for-its-data-dr.html

Publicis Buys eCommerce Firm Crown Partners

http://blogs.wsj.com/cmo/2014/07/01/publicis-buys-ecommerce-firm-crown-partners/

Crown has more than 150 employees and counts Land’s End, Keurig-Green Mountain and GlaxoSmithKline as clients. The company has posted a 40% annualized revenue growth rate since it was founded in 2001, though Crown Chief Executive Richard Hearn said the firm is growing faster than that right now. Mr. Hearn said technology has played a bigger part in front office operations to boost revenues in the last three to five years.

Mobile advertising leads growth;

Total US Ad Spending to See Largest Increase Since 2004

Mobile advertising leads growth; will surpass radio, magazines and newspapers this year

http://www.emarketer.com/Article/Total-US-Ad-Spending-See-Largest-Increase-Since-2004/1010982