Before the acquisition, Lautrec and Euro RSCG were the country's No. 8 and No. 10 agencies, according to an Advertising Age ranking based on 1998 gross income.
The acquisition will result in the creation of two companies employing 160 people, with combined billings of $150 million. Lautrec Euro RSCG will handle traditional advertising while The Sales Machine will offer marketing services such as event organization, direct marketing, sales promotions, database services, public relations and merchandising.
Both agencies will handle clients such as Air France, Banco Galicia, Bardahl, La Serenisima, Bonafide, Cadbury Stani, Citroen, Peugeot, Philips, Telefonica and Villavisencio.
"We consider Argentina the core of our Latin America operation, since we were the first network to locate its headquarters in Buenos Aires," says Eduardo Plana, CEO of Euro RSCG Latin America.
The board of Lautrec Euro RSCG will be headed by Gianni Gasparini as CEO, Pablo Benegas as VP, Juan Cravero as general creative director, Roberto Marquez as general manager and Martin Glucksmann as chief financial officer.
Euro RSCG came to Latin America in 1995. The network operates in 12 countries and has 600 employees working for 23 companies, includingadvertising agencies, design companies and marketing services.
Euro RSCG Worldwide, owned by Havas Advertising, is the fifth-largest global ad agency network, according to Advertising Age's annual Agency Report.
Copyright October 1999, Crain Communications Inc.