Interpublic Group of Cos., New York, reached agreement to acquire Carmichael Lynch, Minneapolis, in a stock swap worth about $30 million. Carmichael Lynch, with billings exceeding $200 million, will remain independent under its current management, but report through Interpublic shop Campbell-Ewald, Detroit. The deal, expected to close in April, will swap Carmichael Lynch's employee stock ownership plan for Interpublic stock, which will be held in Carmichael Lynch's 401(k) employee retirement plan. Advertising Age had reported last month Interpublic was in talks with Carmichael Lynch and other shops (AA, Jan. 12). Autonomy had been an important point in the negotiations.
D'Arcy to handle Cadillac SUV ads
D'Arcy Masius Benton & Bowles, Los Angeles, will handle creative work for the launch of Cadillac's first sport utility vehicle this fall. DMB&B, Troy, Mich., is agency for the General Motors Corp. division. Cadillac maintains the move isn't unusual, saying ideas from other DMB&B offices, including London, St. Louis and Los Angeles, were used for the debut of Caddy's Catera in fall 1996. Separately, Cadillac asked dealers to submit suggestions to name the new SUV.
Migraine account review by Novartis
Novartis Pharmaceuticals Corp. roster agencies Grey Advertising and Jordon, McGrath, Case & Taylor, both New York, and possibly others may soon battle it out for a new estimated $30 million assignment for prescription nasal spray Migranal, a migraine remedy. Novartis said Denver Broncos star and Super Bowl MVP Terrell Davis, a migraine sufferer, is the product's likely ad endorser.
Allied Domecq gets marketing chief
Allied Domecq Spirits & Wine named Todd Martin its U.K.-based marketing director, a newly created global marketing position. Mr. Martin, 42, had been VP-marketing at Pizza Hut International and VP-marketing, Europe, for PepsiCo Restaurants, since spun off as an independent company, Tricon. He will be responsible for the company's $502 million marketing budget supporting a range of brands and will be in charge of U.K. and U.S. brand groups.
Cost-cutting shift for `New Yorker'
As expected, The New Yorker will formally become part of Advance Publications division Conde Nast Publications, said executives who hope the move will control costs and move the weekly closer to profitability (AA, Dec. 15.). President Thomas A. Florio will report to his brother and Conde Nast CEO Steve Florio, but New Yorker Editor in Chief Tina Brown will continue reporting directly to Advance Chairman S.I. Newhouse, rather than Editorial Director James Truman. The New Yorker, which has been informally exploring marketing opportunities with other CN titles, will be included in group ad buys.
New global pet food unit at Heinz
H.J. Heinz Co. said it is creating a worldwide Specialty Pet Food division and named former Star-Kist Seafood VP-Sales & Marketing John Heil, 45, as president. Mr. Heil most recently was VP-specialty products for Heinz Pet Products.
Continuing operations loss at $131 mil for CBS
CBS Corp. reported reduced losses from its continuing operations for the fourth quarter and full year 1997. The loss from continuing operations in the fourth quarter was cut to $10 million from $63 million in the year-ago quarter. For all 1997, the loss from continuing operations was $131 million compared with $221 million in 1996. When proceeds from the sale of discontinued operations are included, CBS reported fourth-quarter net income of $861 million, compared with a net loss of $34 million a year ago, and full-year 1997 net income of $549 million, compared with net income of $95 million a year ago.
Havas will purchase SFM Media
Havas Advertising, Paris, agreed to purchase SFM Media, New York, the largest remaining media independent in the U.S. with billings of $1 billion, according to Advertising Age estimates. The deal was expected (AA, Dec. 1). Terms of the acquisition were not known. Of the three founding principals of SFM, only Robert Frank, president-media services division, is expected to stay. Chairman Walter Staab is expected to pursue other interests. Stanley Moger, president of SFM's entertainment division, is expected to spin off that division as a separate company.
BK ads counter McDonald's promotion
Burger King Corp. broke two new spots last week offering a Big King for 99 cents, countering a McDonald's Corp. Big Mac Winter Olympics promotion launched Feb. 6 offering two Big Macs for $2. Ammirati Puris Lintas, New York, handles TV for the BK offer. DDB Needham Worldwide, Chicago, produced TV for the McDonald's promotion.