BBDO/Detroit, Ross Roy Group call off merger negotiations

DETROIT–Merger talks between Omnicom’s BBDO/Detroit and Ross Roy Group/Bloomfield Hills broke down last week apparently after the two sides cou…The announcement came at a Ross Roy board meeting last week. In a statement signed by Ross Roy head Glen Fortinberry, the agency announced that “BBDO initiated discussions” about merging with Ross Roy last year. Because of legalities, Fortinberry was not allowed to discuss any part of the action at the time. He said in the statement that both sides “mutually agreed” to end the talks after “a definitive agreement could not be reached.”Although details are sketchy, a source close to the deal said last week that the two sides couldn’t come to terms on the financial end of the pact. The source said that BBDO executives did not want some of Ross Roy’s operating divisions. (Ross Roy owns a number of operating divisions including Ross Roy Advertising, Ross Roy Direct and Ross Roy Retail.)It is not clear which divisions BBDO did not want, or if a client conflict–such as BBDO’s Pizza Hut and Ross Roy’s Domino’s–played a part in the breakdown. However, it was clear that not all of the operating companies would have been part of the deal.BBDO and Ross Roy entered into discussions last fall. Both agencies share Chrysler as a client.Copyright Adweek L.P. (1993)