Maxxcom, the marketing and advertising arm of Toronto's MDC Communication Corp., said it will buy Crispin Porter & Bogusky, Miami. The price is estimated at $10 million to $20 million in stock. Crispin Porter is a small but high-profile shop that won Advertising Age's Creativity magazine's Agency of the Year award for 2000. The deal calls for Maxxcom to purchase 49 percent of Crispin Porter now and gives the Canadian holding company the option to purchase the remainder of the agency in 2006.
Alex Bogusky, partner and creative director at the agency said that his shop made the deal because it wants to expand operations. "Our brand is bigger than our agency," said Mr. Bogusky. "We have brand awareness that is similar to agencies that are a lot larger than us and we are tending to compete with agencies that are larger. The hope is that we will be able to do some things that we wouldn't have been able to afford to do previously -- and bring in more business." The agency, Mr. Bogusky mentioned, has been contemplating opening a satellite office in the West, possibly Colorado, or alternatively in the New York City area.
"We've been thinking about Hoboken," Mr. Bogusky said. "Everybody who works in Manhattan who we could afford to hire lives in Hoboken." Another possible site the agency has been considering is Brooklyn. "How cool would it be to have Crispin Porter Bogusky with offices in Coconut Grove and Brooklyn?" Mr. Bogusky enthused.
Copyright January 2001, Crain Communications Inc.