Melbourne-based media buyer Mitchell & Partners has marked its entry to the Western Australian advertising market with the purchase of a 51 per cent stake in the media arm of Workhouse Advertising for $6.4 million.
Melbourne-based media buyer Mitchell & Partners has marked its entry to the Western Australian advertising market with the purchase of a 51 per cent stake in the media arm of Workhouse Advertising for $6.4 million.
In a statement released today Mitchell Communication Group Ltd revealed it had launched Mitchell & Partners (WA) Pty Ltd as part of an expansion of its flagship brand.
Workhouse Advertising media director Andrew Newman has been appointed Mitchell & Partners (WA) managing director.
Mitchell & Parnters (WA) will compete with established buyers in the WA market including Marketforce's Media Decisions, Initiative Media and Starcom.
Mitchell Communication Group chief executive Stuart Mitchell said the Perth market was Australia's most dynamic and it had been on its radar for some time.
"We are looking forward to providing more competition in the Perth market," Mr Mitchell said.
Mitchell Communication said Workhouse Advertising had annualised billings in excess of $35 million and had been the fastest growing media buying operation in the Perth market for the past two years.
Mitchell Commuication intend to launch its emitch Internet media buying business into the Perth market within weeks.
The acquisition of Workhouse is effective from July 1, Mitchell Communication said.
Mitchell's news release is pasted below:
MITCHELL & PARTNERS LAUNCHES WEST AUSTRALIAN OFFICE
Mitchell Communication Group Limited (ASX: MCU) today announces the launch of Mitchell & Partners (WA) Pty Ltd, heralding a significant national expansion of the Group's flagship brand.
The West Australian operation has been achieved through the purchase of 51% of the media division of local ad agency Workhouse Advertising, which has annualised billings in excess of $35m. It has been the fastest growing
media buying operation in the Perth market for the past two years.
Andrew Newman, the current Media Director of Workhouse, will become Managing Director of Mitchell & Partners (WA), reporting to a local Board of Directors.
The acquisition is effective 1st July, and the purchase price is $6.426m which will be funded by debt and equity
Stuart Mitchell, CEO of Mitchell Communication Group said: "The Perth market is Australia's most dynamic, and has been on Mitchell's radar for a long time, but it would have been foolish to enter the market without great
local partners. We are looking forward to providing more competition in the Perth market and a diverse range of services currently not available. To that end we will launch emitch to the Perth market within weeks."
John Molloy, Managing Director of Workhouse Advertising said: "Mitchell & Partners has been an icon brand in the Australian media scene for over three decades. We have watched their expansion and diversification over the last
couple of years with interest, and welcome this opportunity to partner them in Australia's fastest growing ad market. We see their launch into the Perth market as a fantastic opportunity for advertisers, both large and small, to benefit from the most powerful media agency in Australia."
