Omnicom Confirms Organic Purchase

NEW YORK Omnicom has bought Organic from Seneca for an undisclosed sum, the holding company confirmed in an investor presentation last week.

Last June, Omnicom CFO Randall Weisenberger expressed the company’s interest in buying Organic and Agency.com [IQ Daily Briefing, June 12, 2002]. Agency.com has yet to be purchased by Omnicom, but sources said that deal could close by the end of the first quarter.

In 2001, Omnicom transferred its i-shop investments, including a 17 percent stake in Organic and a 35 percent stake in Agency.com, to Seneca in exchange for preferred stock in the firm. Seneca eventually assumed 100 percent ownership in Organic and Agency.com by purchasing their remaining shares and taking the publicly traded companies private.

In acquiring Organic, Omnicom expands some of its existing client relationships. One of Organic’s biggest accounts is DaimlerChrysler, an Omnicom client. Organic also shares Tommy Hilfiger, Washington Mutual and Reebok, among others, with Omnicom sibling shops.

The New York-based holding company also said that it acquired Multi-M, an e-business company in Hamburg, Germany. Multi-M will join MSBK Proximity, which is part of the BBDO network.