P&G HANDS WELLA ACCOUNT TO LEO BURNETT

Global Assignment Worth $108 Million

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LONDON (AdAge.com) -- Procter & Gamble Co. has handed the $108 million global Wella Haircare advertising account to Publicis Groupe's Leo Burnett.

P&G's roster agencies -- Publicis' Saatchi & Saatchi, Publicis Worldwide and Leo Burnett and Grey Global Group's Grey Worldwide -- have been waiting since July to find out which would take over the Wella account.

A Wella representative said, "Leo Burnett

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has been appointed but how we run the business I can't say. Everything has not yet been designed."

Former Bates client
P&G took control of the German hair care and fragrance marketer in a $3.75 billion deal in March this year. Wella, whose brands include Flex, Vivalite and Shockwaves, is one of the last European clients of Bates Worldwide to find a new home. Bates is in the process of closing down following WPP Group's acquisition of its parent company, Cordiant Communications, in July. The global Wella business has been led by Bates Germany since March 2001.

Publicis' Saatchi handles Head and Shoulders globally and Physique in the U.S. Grey handles Pantene and Clairol hair color. Leo Burnett handles Pert in the U.S. and Vidal Sassoon in Asia. Additionally, Clairol Herbal Essences is handled by Publicis' Kaplan Thaler Group in the U.S. and Leo Burnett in Europe.

Wella's media is currently handled on a country-by-country basis. The media account is also expected to move to a P&G roster agency, either Publicis' ZenithOptimedia, StarcomMotive or MediaVest or Grey's MediaCom, executives close to the business said.

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Jack Neff contributed to this report.

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