Mcdougall Nears A Deal

What’s in a name? Not “McDougall,” once the proposed buyout of McDougall Associates by Bozell Worldwide is completed.
Dan McDougall, president of the Peabody, Mass.-based agency, said the paperwork consummating the deal is “with the lawyers” and should be finalized by the end of the month. It could close as soon as this week, he added. McDougall Associates will become a branch of Bozell Kamstra, a primarily business-to-business shop with billings of $75 million [Adweek, May 4]. Bozell officials declined comment.
The McDougall Associates name–which has graced the agency’s door since its inception in 1970–will be changed to Bozell Kamstra, McDougall said last week.
McDougall will stay on, as will his brother, agency chairman and co-founder Mike McDougall. The two will remain in charge of the 45-person shop, Dan McDougall said.
Privately held McDougall Associates claimed 1997 billings of $48 million and revenues of $8.4 million, up slightly from the previous year. The agency’s business-to-business roster includes various Marriott hotel and resort properties and Tyco International, which owns ADT Security Systems in Aurora, Colo.
Although the shop has had a low creative profile and modest new business success in recent years, it is considered well managed, fiscally sound and has long been at the center of merger and buyout rumors.
McDougall Associates has shown a flair for creating memorable campaigns in somewhat offbeat media, including in-store displays, sales videos and collateral pieces.
Through the acquisition, Bozell is looking to build another brand within its network, sources have said.
Bozell Kamstra’s clients include 3M, Canon USA and Medtronic. The Minneapolis-based agency also does some consumer advertising, most notably for Schwan’s Sales Enterprises’ frozen pizza brands, including Tony’s, Red Baron and Frenchetta. — with Aaron Baar