Mosaic to merge four UK agencies

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.

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

size.



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

distributed.



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

year.



Gross profit for the Mosaic Group’s UK operations last year was pounds

15.1 million.



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.



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