Summerfield Wilmot Keene is taking control of the Leeds agency CWG
- formerly the Charles Walls Group - in a deal marking the withdrawal of
CWG's 10 Group owner from the agency scene.
SWK and CWG, which claim combined billings of more than £40
million, will keep their separate identities but hope to benefit from
clients needing services from bases in London and the North.
At the same time, the agreement gives CWG representation in the capital,
while allowing SWG access to the Leeds shop's design and website
The acquisition is the second within a month for SWK, which has just
bought EPB Communications (Campaign, 7 September). SWK is paying £460,000 over five years for a 70 per cent stake in CWG. It will also
repay a £100,000 loan outstanding from CWG.
Like CWG, SWK is also a one-time 10 Group subsidiary, but bought itself
out in December 1999 after less than a year.
The AIM-listed 10 Group, which grew out of the former Brunnings
operation, said it wants to concentrate on investment and leisure
opportunities and is no longer interested in running wholly owned agency
Andy Moore, the 10 Group chairman, said: "Agencies are hands-on
businesses and I've been unable to commit the time and support
He added: "We've not been disappointed by CWG's performance, but it is
operating in a difficult market and needs to be part of a bigger
SWK's chief executive, Malcolm Summerfield, said: "Being an investment
company makes much more sense for 10 Group rather than buying businesses
it doesn't understand."