Dentsu, Inc. (President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that its global business headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of PPR Profissionais de Publicidade Reunidos S/A, the official name of the NBS advertising agency (Head Office: Barueri, S„o Paulo, Brazil; hereinafter ďPPRĒ), to acquire a 70% stake in the company with put and call options in place that would allow acquisition of part or all of the remaining equity at a later date. It is estimated that it will take around four to six weeks to obtain competition approval from the relevant authorities in Brazil.
Founded in 2002, and with strengths in integrated advertising and communication services, PPR developed its advertising agency business under the NBS brand name. In 2013 NBS was the 14th largest agency in Brazil by media billings and one of the largest independent agencies, with several major local companies on its client roster.
Dentsu (dentsu.co.jp) has to date been providing a wide range of services to client companies in Brazil through its full-service advertising agency Dentsu Latin America Propaganda (commonly known as Dentsu Brazil) and digital agencies AgÍnciaClick Isobar, AGE Isobar, iProspect and LOV Interactive Communications.
With Brazil set to host the 2014 FIFA World Cup and the 2016 Summer Olympic and Paralympic Games, its advertising market, the largest in Latin America, will continue to grow. The acquisition of NBS will allow Dentsu to form the core of the Groupís presence in Brazil, thereby enhancing its competitive advantage in the advertising and marketing sectors as well as accelerating the growth strategy of the Group.
In its March 2014 worldwide advertising expenditure forecasts, the Dentsu Groupís media communications agency Carat announced that ad spending in Brazil grew 7.1% in 2013 and predicted high growth rates of 10% in 2014 and 8.1% in 2015.
The impact of this transaction on Dentsuís consolidated financial results for the fiscal year ending March 31, 2015 is expected to be minimal.
Profile of NBS
Company Name: PPR Profissionais de Publicidade Reunidos S/A (Advertising agency business developed under the NBS brand name)
Location: Barueri, S„o Paulo, Brazil (Offices also in Rio de Janeiro and Brasilia)
Year of Establishment: 2002
Capital: BRL 3,198, 000
Shareholding Ratio*: Dentsu Aegis Network 70%
*After acquisition has been completed
Gross Profit: BRL 134,000, 000 (year ended December 2013)
Representative: Cyd Alvarez (CEO, NBS)
Number of Employees: 380
Line of Business: Full-service advertising and communication services