Omnicom Group Inc. (OMC - Free Report) recently announced the acquisition of U.K.- based brand and retail agency Haygrath by its subsidiary RAPP. The value of the transaction was kept under wraps.
Established in 1984, Haygrath has been successfully providing creative ideas for the fast-moving consumer goods (FMCG) and retail industry. The company has earned various accolades, including Marketing Magazine's Promotional Agency of the Year for the last two years, as well as The Grocer's Experiential Agency of the Year for the past three years. Haygrath has also been featured in The Sunday Times' 100 Best Small Companies list.
The integration is expected to enable RAPP gain a better foothold in the total customer experience spectrum, by providing expert marketing and communications solutions. Haygrath’s areas of expertise including promotional/retail/channel & shopper; social media/PR & experiential; digital/CRM & data are expected to be an ideal and strategic match for RAPP's globally-focused data insight, media and technology proficiency.
Earlier in May 2014, Omnicom’s TBWA Worldwide completed the acquisition of an independent German advertising agency- Heimat for an undisclosed amount. Following the buyout, TBWA Worldwide holds the majority stake in the company headed by its founding partners with the remaining stake owned by Heimat.
Additionally, in Mar 2014, TBWA Worldwide acquired the advertising agency, Mood, to expand its presence in the Brazilian market. All these acquisitions are in line with the company strategy to form a scalable and efficient global advertising network.
We expect the company to witness increased revenues and income on the back of these acquisitions in the upcoming quarters. With a market capitalization of $18.4 billion, Omnicom holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Coupons.com Incorporated (COUP - Free Report) , Marin Software Incorporated and Sizmek Inc. . Each of these stocks carry a Zacks Rank #2 (Buy).