Nick Garrett Tipped to Lead Omnicom's Clemenger Acquisition and Structural Shake-Up
Deal News | Jun 16, 2025 | EIN
Omnicom, a leading global advertising firm, is negotiating the acquisition of an additional 13.16% share of Clemenger Group, in order to gain full control of the company. This move is anticipated to bring significant structural changes within its operations in Oceania. Nick Garrett, a former Omnicom executive, is expected to lead this initiative, aligning Omnicom's regional structure with similar integration models of other global holding companies. The acquisition decision rests on a shareholder meeting slated for June 30, coinciding with Clemenger's long-standing chairman stepping down. This deal marks an extension of a relationship that started in 1972 when BBDO acquired an initial stake in Clemenger. Concurrently, Omnicom is involved in a major acquisition effort to purchase Interpublic Group (IPG), reviewed by regulatory bodies, positioning it as the largest advertising holding company globally. The proposed integration is aligned with Omnicom's broader strategy to unify media and creative services, reflecting a possible test scenario for such a model in Australia and across its global operations.
Sectors
- Advertising and Marketing
- Media
Geography
- Australia – The Clemenger acquisition and potential regional restructuring are expected to heavily impact the advertising and media landscapes in Australia.
- United States – Omnicom Group is a US-based global holding company, thus US-based activities and strategic decisions are integral to its operations.
- Oceania – The anticipated restructuring and integration of Omnicom's operations directly involve its regional activities within Oceania, including Australia and New Zealand.
Industry
- Advertising and Marketing – The article discusses the acquisition of Clemenger Group by Omnicom and how it affects the advertising and marketing landscapes in the region, as well as Omnicom's broader strategy in this sector.
- Media – Media integration is a key part of Omnicom's strategy to align its operations more efficiently, reflective of the company's broader vision of unifying media and creative services.
Financials
- $US750 million ($AU1.16 billion) – Expected annual cost synergies resulting from the Omnicom and IPG merger.
- $US25.6 billion – Projected revenue for the newly combined company post the Omnicom and IPG merger in 2023.
- $US3.9 billion – Projected adjusted EBITA for the combined Omnicom and IPG entity.
- $US3.3 billion – Projected free cash flow for the combined company resulting from the Omnicom and IPG merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Omnicom Group | Bidding Company | Company | A global advertising and marketing communications company negotiating for full ownership of Clemenger Group. |
| Clemenger Group | Target Company | Company | An advertising and marketing group in which Omnicom is seeking full ownership. |
| Nick Garrett | Potential Leader | Person | Former Omnicom executive tipped to lead the new regional structure following the acquisition. |
| Interpublic Group (IPG) | Target Company | Company | A rival holding company that Omnicom is aiming to acquire to become the largest in the industry. |
| BBDO Worldwide | Other Company | Company | Part of Omnicom Group, initially acquired a stake in Clemenger agency marking the start of a long relationship. |
| ACCC (Australian Competition and Consumer Commission) | Regulatory Body | Government | Reviewing the potential competitive impacts of Omnicom's acquisition activities. |