S4 Capital continues a streak of strategic mergers with a deal that brings Los Angeles-based Cashmere into the fold. It follows the pattern of previous deals, merging the agency into Media.Monks, itself created just a month ago from S4’s flagship brands—content arm MediaMonks and data and digital media arm MightyHive.
The move adds strong creative and multicultural chops to the global group. Taco Bell appointed Cashmere as its first culture agency of record in August, and the agency has created culturally relevant work for brands including Jack in the Box, DoorDash, Danone North America, Nascar, Facebook and Google. Cashmere’s entire C-suite and 75% of agency staff are multicultural, and the shop has created initiatives such as OneOpp, a police reform and racial justice coalition.
“When you look at how the U.S. is changing and you look at the pulses or the trends around diversity, inclusion and the cultural waves that are taking place, to my mind it's a natural alliance between Media.Monks and Cashmere,” says Martin Sorrell, S4 Capital executive chairman.
Though the agency had been open to hearing buyout offers in years past, this deal—half shares and half cash, as is S4’s practice—was the first that was seriously entertained, says Ted Chung, Cashmere's chairman and co-founder. “We always knew that going into international territories was the next exciting step for us, and how much the Media.Monks and Cashmere vision was aligned on that allowed us to just really come together quickly and say this is the way that we can bring the culture further to the boardroom.”