Montemayor Agrees to Sell

True North Communications has agreed to acquireHispanic advertising agency Montemayor y Asociados.

Neither the agency nor the acquiring parent organization would comment on the deal except to confirm the signing of a letter of intent late last year.

An industry source, however, said that Montemayor will become part of True North’s New Americas Strategies Group. The agency will round out the multicultural offerings of group members Don Coleman Advertising (African-American) in Southfield, Mich., and Imada Wong Communications Group (Asian-American) in Los Angeles.

The addition of Montemayor creates two Hispanic resources within the True North network. The other, SiboneyUSA in New York, operates independently within TN’s Diversified Companies segment. The two agencies both have presences in the Southwest (Montemayor in San Antonio and SiboneyUSA in Dallas) and the Southeast (both in Miami).

Montemayor re-portedly became acquainted with True North through a shared client—DaimlerChrysler—when TN agencies FCB Worldwide and Don Coleman handled advertising for the automaker. Montemayor continued to provide Hispanic ad services for DaimlerChrysler, an account it has held for 13 years, after the client consolidated its general advertising business at BBDO Worldwide in Troy, Mich.

Montemayor was founded in 1983 by current president and chief executive officer Carlos Montemayor. It had 1999 billings of $41 million and more than 40 employees. In addition to DaimlerChrysler, clients include Pioneer Flour Mills, Continental Airlines, Taco Cabana and the Modelo beer brand for importer Gambrinus Cos.

The Hispanic agency was also one of 17 DaimlerChrysler non-production suppliers to receive a gold award last year for high-qualityservice in promoting the automaker’s nameplates.

Prior to the purchase agreement, Montemayor y Asociados ranked as the second-largest independent Hispanic shop in the Southwest, topped only by Garcia/LKS, also located in San Antonio.

Chicago-based True North operates agencies FCB and Bozell, as well as a variety of other shops under its Diversified Companies group. The company had 1999 revenue of $1.4 billion and annual billings of more than $14 billion.