Havas acquires majority 51% stake in Host – will maintain its current name and continue to operate under Freedman and existing management team
Host today announced it has accepted an offer from Havas Worldwide to acquire 51% of the agency as part of a planned expansion into international markets.
The news comes a week after CB sources said the Havas deal was close and over three months since CB first broke the news of a possible sale of Host to Havas lead agency Euro RSCG.
Meanwhile, CB hears that group CEO of Havas Australia, Anthony Gregorio, departed for a six month sabbatical on Monday, presumably after helping to seal the deal over the last few months.
Host, which was established in 2000 by Anthony Freedman (above), has successfully pioneered a unique way of working, replacing the conventional creative department with a pool of independent creative groups, their selection based on the needs of the clients’ brand or brief.
This unique approach to creative resourcing has produced award winning work within Australia and around the world, including a Grand Prix and Titanium Lion at Cannes, and several silver pencils at D&AD.
Says Freedman: “In 2010 we turned ten years old as the biggest independent agency in Australia. Reaching this milestone prompted reflection on what might lie ahead for the next ten years. When Havas approached us with the same enthusiasm and belief in our business as we have, we seemed to have found the answer to that question.
“Working with Havas, we will initially explore expansion opportunities closer to home, but if they go according to plan then we will look further afield. With the support of a company like Havas, anything is possible.”
Says Havas Global CEO, David Jones: “It’s a very strategic acquisition sitting at the intersection of creativity, digital and Asia-Pacific. They are Australia’s largest independent agency, a brilliant creative agency, totally in line with our digital at the core model – over 30% of their revenue is digital – and after the acquisition of Porda in Hong Kong, this further increases our revenue coming from APAC.”
Host will continue to operate autonomously with operational control remaining with the current management team, but the Board will be joined by several key Havas executives including David Jones.
Says Jones: “Our intention is to find exceptionally well run businesses and allow them to continue to be just that following our investment. We have no interest in changing a thing with Host, we simply believe that with our reach, client relationships and capital, we can help a great agency and leadership team grow beyond Australia.”
PR company One Green Bean, which was co-founded by Freedman and One Green Bean managing director Kat Thomas in 2007, will also be included in the transaction with similar terms. It’s anticipated that One Green Bean will formalise an existing relationship with Cake, part of the Havas network with established offices in London, Paris and New York.
Says Thomas: “In four years we have established an enviable client list, working with numerous global blue chip and FMCG brands including Unilever, Virgin, IKEA, Toyota and LEGO. The opportunity to expand these relationships and explore global briefs is something that we’re looking forward to. I believe the ability to tap into a global network for strategic input and executional support will quickly prove to be a significant value- add for many of our clients.”
13 Comments
Congratulations Host. Anthony Freedman has built a terrific business the industry is proud of – you deserve a good payout! Good on Havas buying into a great creative independent. Best wishes to you all.
Perfect time to sell, on top of the bell-curve. And well deserved too.
What’s the deal with Glue in all of this though?
Congratulations Anthony.
A great, well timed exit.
Well done to all the team at Host. Great people who create great work.
Sorry to be a party pooper, but surely one of the benefits of Havas/Euro buying into a ‘hot’ shop would be to capitalise on a strong creative product via a strong creative department. But since Host don’t have in-house creatives, Havas agencies will still presumably have to outsource their creative product. So forgive my ignorance, but what’s the benefit to Havas of this deal?
Not so fast, Mr Smart, I’m sure they probably thought it all through before signing a check for several million dollars. Or maybe they thought they would just take a punt?
Mr Smart, you’re an idiot. Host have a management structure that creates the conditions for strong creative to be produced and sold at a profit. That’s what they bought it.
Muppet.
The news that Host don’t have an internal creative department will come as a great shock to the 30 or so creatives, designers, editors, developers and mac monkeys who have worked in it for the last 3 or 4 years, either working with or pitching against The Glue Society and all other Host creative partners.
These days they’re called The Jamboree and I’m assuming Havas just bought them as well.
Really? I thought all the designers, editors, developers and mac monkeys were part of Host production? The Jamboree is a small group of creatives?
What about Arcade?
Thank you, 4:15, I defer to your superior intellect, powers of reason and standard of literacy. But aren’t you going a bit far with the self deprecating bit by signing off as ‘Muppet’?
Hi, I’m a talking pot plant…..
Come on guys. Host are awesome.
There’s very few shops in Australia producing good work. This is one of them.
However they create it. In house? Outsourced? It doesn’t matter because it works. Look at all the big agencies pumping out mediocre work all day long, year after year.
These guys are a breath of fresh air.