Some staff cuts to follow big Burnett, MacManus merger

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Layoffs of an undetermined number of backroom and administrative employees will follow the merger of Leo Group and MacManus Group, Leo Group Vice Chairman-Chief Operating Officer Roger Haupt said. The giant deal was formally announced today, as expected.

"There will inevitably be synergies in this," according to Mr. Haupt, who will be CEO of the new holding company for Leo Group and MacManus, temporarily known as BDM, once the merger is closed early next year. "My job is about growing this organization, not contracting it. None of these synergies will affect client operations," he said in an interview.

Leo Group and MacManus said they hope to close the merger early next year and take the company public soon afterward depending on market conditions. Japan's Dentsu Inc. will take a 20% stake in the new company, which will be Dentsu's major partner serving clients outside Asia.

Copyright November 1999, Crain Communications Inc.

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