Japanese firm Dentsu has bought a majority stake in local independent ad agency Oddfellows as the marketing firm looks to bolster its relationship with Toyota.
Oddfellows has been renamed Oddfellows/Dentsu with Oddfellows to be wholly owned by Dentsu by the end of 2017.
Dentsu currently owns 51% of Oddfellows which is headquartered in Sydney. Andrew Black, Oddfellows’ current managing director, will be chief executive of Oddfellows/Dentsu.
Dick van Motman, chief executive of Dentsu Asia, said: “Dentsu and Oddfellows have had a long and very fruitful working relationship and we are delighted to finally formalize this.”
In 2010 Dentsu was added to Toyota’s local advertising roster, despite the firm not having a local office at the time.
When Dentsu did enter the market in 2011 there was speculation it would look to acquire Oddfellows.
Last year Dentsu acquired Aegis in a deal worth more than $4bn.
The full release:
“Dentsu Inc. announced today that its global business unit, the Dentsu Aegis Network, has reached an agreement with the principal shareholders of Australian advertising company group Oddfellows Holdings Pty Ltd (Head Office: Sydney) to acquire a 51% stake in the company. Under the terms of the agreement, Oddfellows Holdings will become a wholly owned subsidiary by the end of 2017.
Oddfellows Holdings owns three companies: advertising agency Oddfellows Pty Ltd, digital communications specialist @odds Pty Ltd, and art and design studio @tack Pty Ltd which provide integrated advertising communication services including media, digital, strategy, production, CRM and promotions. @odds Pty Ltd and @tack Pty Ltd are both 100% owned by Oddfellows Pty Ltd, which also has strategic alliances with film and animation studios as well as an audio & music studio.
To date, Dentsu has been providing services to its clients in Australia through both its brand and media agencies. The addition of the Oddfellows group of companies to the Dentsu Group will lead to further expansion of the Group’s business in the Australian market and an enhanced range of services, particularly in the creative field. Oddfellows Holdings Pty Ltd will be renamed Oddfellows/Dentsu Holdings Pty Ltd, and Oddfellows Pty Ltd will be renamed Oddfellows/Dentsu Pty Ltd. Andrew Black will be the CEO of all the Oddfellows/Dentsu companies.
“Dentsu and Oddfellows have had a long and very fruitful working relationship and we are delighted to finally formalize this,” said Dick van Motman, CEO of Dentsu Asia. “Oddfellows has been running a very tight ship and we have several shared clients. It made great sense for us to strengthen the relationship with all these parties by welcoming Oddfellows to the Dentsu family.”
The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending March 31, 2014 is expected to be minimal.”