Havas acquires majority 51% stake in Host – will maintain its current name and continue to operate under Freedman and existing management team

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Screen shot 2011-07-27 at 2.18.13 PM.jpgHost 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.

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.”