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Dentsu Announces Acquisition by Dentsu Aegis Network of Full-Service Advertising Agency Arrechedera Claverol in Mexico

  • Investor Relations
  • International

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May 16, 2016

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; 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 acquired full-service advertising agency Arrechedera y Claverol S.A. de C.V. (Head Office: Mexico City; hereinafter "AC").

Founded in 2007, AC provides a full range of advertising and communications services including the development of advertising strategies, integrated creative campaigns, branded content, social listening and software solutions. With a team of 110 advertising professionals, the company has grown to become one of Mexico's largest independent full-service advertising agencies. AC earned its place as one of the hottest and most awarded creative agencies in Mexico, garnering numerous high-profile creative awards including three Agency of the Year honors: International Advertising Bureau in 2015, Merca 2.0 in 2014, and Circulo Creativo in 2013.

Post-acquisition, AC will become part of global award-winning creative agency mcgarrybowen, one of the Dentsu Group's nine global network brands*, and, through collaboration with other Group companies, accelerate the Group's growth strategy in Mexico, second only to Brazil in terms of scale in the Latin American advertising market.

In its March 2016 worldwide advertising expenditure forecasts, the Group's media communications agency Carat announced that advertising expenditures in Mexico grew 4.3% in 2015. Continued growth is expected, with 3.3% forecast for 2016 and 3.1% for 2017.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2016 is expected to be minimal.

*Dentsu Aegis Network Ltd., the Dentsu Group's global business headquarters based in London, is expanding the Group's business worldwide through nine global network brands--Carat, Dentsu (Dentsu Branded Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum--as well as through several specialist/multi-market brands

Profile of Arrechedera
Company Name:     Arrechedera y Claverol S.A. de C.V.
Location:    Mexico City, Mexico
Date of Establishment:    February 2007
Shareholding Ratio*:     Dentsu Aegis Network 100%
        *After acquisition has been completed
Revenue:    Approximately MXN 78,900,000 (year ended December 2015)
Representatives:     Juan Claverol (Co-Chairman, Business and Client Development Director)
             Sebastian Arrechedera (Co-Chairman, Creative Director)
                       Miquel Daura (Managing Director)
Number of Employees:    110
Line of Business:     Full range of advertising and communications services



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