Leap Group Selling Ethnic Shops to Y&R
CHICAGO–In a continuing effort to shift focus toward its Internet arm, The Leap Group here said it has signed a letter of intent to sell the two ethnic agencies grouped under its One World Communications subsidiary to Young & Rubicam in New York. Terms of the sale were not disclosed, but sources said Y&R is paying a total of $10-15 million. Leap purchased YAR Communications, New York, in April 1997 for $23.4 million, and Kang & Lee, which has offices in New York and Los Angeles, last November for $1.4 million. The shops were acquired under former chief executive officer Rick Lutterbach, but do not fit in the plans of new CEO Fred Smith, who said he will use the money from the sale to boost Leap’s Internet capabilities. Kang & Lee and YAR, which are expected to retain their names, share AT&T as a client with Y&R.
Spiegel Talking to Agencies About Account
CHICAGO–Catalog retailer Spiegel in Downers Grove, Ill., confirmed it is talking to agencies about its ad account but declined to identify shops contacted. The company has also talked to design shops about working on its catalogs, according to sources. Spiegel, owned by Germany’s Otto Versand, spent about $15 million on advertising, primarily print work, last year, according to Competitive Media Reporting. The work has been done in-house and through various agencies in the past.
McCann-Erickson Gets Global Nod From Aon
NEW YORK–McCann-Erickson Worldwide has been named the first global agency for Chicago-based insurance company Aon Corp., after a competitive review. Billings and the identities of the contenders were undisclosed. The last time Aon advertised in the U.S was in 1996, when it spent less than a $1 million, according to Competitive Media Reporting.
Bozell Closes McDougall Associates Deal
CHICAGO–Bozell Worldwide has acquired Boston agency McDougall Associates and absorbed it into its Bozell Kamstra business-to-business unit. The deal had been expected [Adweek, June 15]. McDougall will take on the Bozell Kamstra name. Its principals, Dan and Michael McDougall, will report to Dean Buresh, Bozell Kamstra’s Minneapolis-based president. The acquisition pushes Bozell Kamstra’s billings to $200 million. The agency also has offices in Cleveland, Pittsburgh and Austin, Texas.
FCB Launches First World Golf Spot
CHICAGO–Inaugural advertising for the International Federation of PGA Tours’ World Golf Championships breaks this week on broadcast and cable networks. A 30-second TV spot from Foote, Cone & Belding here is tagged, “This time, it’s for the world.” The agency won the Ponte Vedra Beach, Fla.-based organization’s $4 million account in May. The first WGC event, with Andersen Consulting as its title sponsor, is set for February 1999.
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