Burnett picks up direct agency in acquisition drive

MANILA: Leo Burnett Asia-Pacific has acquired a Manila-based direct marketing shop, its first purchase in a regional acquisition drive to boost below-the-line capabilities and achieve a better balance in its revenue base. Burnett now has direct marketing operations in three regional markets, including Australia and Singapore, with its acquisition of First Direct. First Direct was established in 1996 by Ichay Bulaong and Raymond Legaspi, formerly from Ogilvy & Mather Direct. The agency, which bills US$500,000 and counts Pfizer and Heinz among its clients, said rival groups, including BBDO and J. Walter Thompson, had pursued it. Burnett's regional managing director Richard Pinder said the next acquisition would be an interactive company in Singapore. The deal had been in the works since the second quarter. "We have a lot of business in the group which was grown by the company rather than through acquisition. This shows we have the capability to do such things, but with an 80 to 20 revenue split (in favour of advertising), it shows that they are not market leaders." Pinder said the acquisitions were about "being best in class" in key areas such as direct, design and interactive. The network is keen to acquire design companies to handle medium to lower end design work, including packaging and POS materials.

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