Omnicom Moves To Fully Buy Out Clemenger Group
Omnicom is looking to fully buy out Clemenger Group, taking over the 13.16% of shares currently spread out between approximately 350 employees.
The Australian reports shareholders will take the proposed deal to a vote on June 30th.
Clemenger has operated a staff share scheme since 1973, giving all Australian and New Zealand employees of companies within the Group the ability to apply for shares. Omnicom’s BBDO Worldwide purchased a 35% stake in the Clemenger agency in 1972, a number which was increased to 74% in 2011.
BBDO Worldwide currently owns a majority stake of 86.84%.
The buyout would give Omnicom full ownership across its creative agency portfolio in the region, including those housed within the Omnicom Advertising Group (OAG) structure, such as TBWA, DDB, and BBDO agencies Clemenger and Colenso.
OAG was created last August to house Omnicom’s creative agencies, and is headed by global CEO, and Australian ex-pat, Troy Ruhanen, who started in January.
Upon its formation, Troy told LBB OAG would address the fact that “our clients need more from us.”
“The growth of marketing channels, consumer expectations, data, technology and AI mean that we need the best creative talent in the world, along with more capabilities, more technologies, and more tools than ever before to be competitive,” TBWA’s former global CEO said.
“We can’t invest in all of this individually. While our agencies are the hubs of talent, OAG will provide the foundation of technology, capabilities and innovation that will enhance how we grow and sell creative ideas and solutions.”
On a visit to Australia late last year, Troy also told LBB, “When agencies get greedy and they overpromise and underdeliver, that's when we're vulnerable.”
He added OAG will flex to solve clients’ challenges and preserve the storied creative brands, in contrast to competitors whose agency brands "have gotten weak ... or they've collapsed.”
At the time, Troy believed he would have regional plans, including any hires, ready to unveil upon his official start in early January. The delay has come against a backdrop of significant change, led by Clemenger’s merger with CHEP and Traffik.
The merger was revealed in February — BBDO global boss Nancy Reyes told LBB in an exclusive interview the integration was a way to “put our arms around this business — and took effect in March. CHEP CEO Lee Leggett became CEO of the new entity, and a number of key executives departed, including Clems CEO Dani Bassil and CCO Adrian Flores, and CHEP CCO Gavin McLeod and CSO Lilian Sor.
Lilian moved to the same role at Howatson+Company, run by former Clemenger Group exec Chris Howatson.
Existing Clems CSO Simon Wassef remained in his role, and CHEP deputy CCO Glen Dickson became deputy CCO. The business is set to announce its new CCO soon.
Lee told LBB in her first interview as CEO, “whilst it's the creation of something new, it's almost the creation of something that was always there.”
At an Omnicom level, DDB AUNZ CEO Andrew Little stepped down after over two decades at the agency in March, resulting in Priya Patel’s promotion to the regional role, and Matty Burton becoming AUNZ CCO. At TBWA, AUNZ CEO Paul Bradbury has overhauled his Sydney leadership team, and led the business to a run of new business wins in 2024.
Looking ahead for the business, the proposed acquisition of Interpublic Group (IPG) by Omnicom is expected to be finalised in the second half of 2025, with the merger expected to generate $750 million in annual cost synergies.
With a combined 2023 revenue of $25.6 billion, adjusted EBITA of $3.9 billion, and free cash flow of $3.3 billion, the combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange.
