The Mosaic Group, the fast-growing Canadian marketing services
network, is poised to create a new top-ten direct marketing agency by
merging its four UK agencies.
Mosaic, which bought Stretch the Horizon last year, aims to create a
major new below-the-line force with the expertise to allow it to compete
with both sales promotion and direct marketing agencies of a similar
The new agency, which has yet to be named and located, would be the
fifth-largest in the UK ranked by gross profits.
The agency is expected to open its doors at the end of this year and
will have in the region of 200 staff. Employees will be drawn from STH,
the sales promotion agency ZGC, the direct marketing agency Dialogue
ZGC, and the brand extension agency Creative IQ.
It is as yet unclear how the senior management roles will be
Key personnel include STH’s co-founder Mark Sheard, and Alistair
Waldron, the managing director of Dialogue. ZGC’s co-founder Marc Zimmer
has already moved up to a role within the Mosaic Group.
Sources say that there will be no redundancies and it has been suggested
that the group is seeking to recruit expertise in certain areas,
including new media.
The highly acquisitive Mosaic Group made its first foray into the UK
with its pounds 6 million purchase of the ZGC Group in December 1997.
ZGC then bought Creative IQ the following autumn. The group’s UK line-up
was completed last spring with Mosaic’s pounds 17 million acquisition of
STH (Campaign, 16 April 1999).
The building blocks of the merger have been in place for some time and
the four agencies reported combined figures for the last fiscal
Gross profit for the Mosaic Group’s UK operations last year was pounds
Clients across the group include Coca-Cola, Renault, Barclays Bank,
Unilever, British Sky Broadcasting and MTV Europe.
No-one at any of the component agencies was available for comment as
Campaign went to press.