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Bozell, McDougall Talk

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The consolidation that is sweeping the advertising industry could reach Boston's North Shore.
McDougall Associates in Peabody, Mass., is on the verge of being sold to Bozell Worldwide, sources said last week. While agency president Dan McDougall acknowledged that "we've had talks with Bozell," he also cautioned, "It's not a done deal." Executives at Bozell declined comment.
Under the terms being negotiated, McDougall would become a branch office of Bozell Kamstra, a primarily business-to-business entity with billings of $75 million from clients such as 3M, Canon USA and Medtronic. Headquartered in Minneapolis, Bozell Kamstra also does some consumer advertising for Schwan's Sales Enterprises' $15 million frozen pizza brands, which include Tony's, Red Baron and Freshchetta.
By acquiring McDougall, Bozell officials hope to build another brand within the network, sources said. Bozell Kamstra also has an office in Austin, Texas. It was unclear whether McDougal would be renamed should a sale be completed.
McDougall, a $48 million mostly business-to- business shop, was founded in 1970 by brothers Mike and Dan McDougall, chairman and president, respectively. Its clients include Tyco International, which owns ADT Security Systems in Aurora, Colo., and various Marriott properties.
McDougall reported revenues of $8.4 million in 1997, up from $7 million the year before, and employs some 40 full-time staffers. While not flashy, the McDougalls are regarded both for their civic activities in the North Shore communities where they live and work and for running a fiscally sound if creatively conservative full-service shop. --with Aaron Bar