Interpublic Aligns Deutsch Inc. and Lowe Worldwide

Deutsch To Assume Management Oversight of Lowe Operations in North America Under Leadership of Linda Sawyer

Deutsch New York to Absorb Lowe NY Office
Moves Further Strengthen Lowe Worldwide, Adding Dynamic U.S. Hub Agency to Growing Global Network
Deutsch Gains Access to Global Presence to Secure and Grow Multinational Client Relationships
NEW YORK--(BUSINESS WIRE)--Oct. 15, 2009-- Interpublic Group (NYSE: IPG) announced today that it will be aligning its Deutsch agency with Lowe Worldwide. Deutsch will become the North American hub of the Lowe & Partners global network, assuming management oversight of Lowe operations in North America, including Lowe New York, Lowe Roche Toronto and Lowe Healthcare, under the leadership of Linda Sawyer. Deutsch NY will absorb the Lowe New York operations. Lowe Roche and Lowe Healthcare will continue to operate without any change to their current leadership teams and branding. Deutsch LA will also be unaffected, continuing to run as an integrated agency, reporting to Deutsch Inc. Going forward, Deutsch will operate under the name “Deutsch Inc., a Lowe & Partners Company.”

“The Lowe turnaround has been an important part of the overall progress made at IPG in recent years. The agency had made great strides in reclaiming its place as a global creative powerhouse, it’s won major assignments from existing and new multinational clients and, as a result, has reversed revenue declines and significantly improved profitability. We’ve also brought on great talent and added to the agency’s leadership with the recent arrival of CEO Michael Wall,” said Michael I. Roth, Interpublic’s Chairman and CEO. “Deutsch is an agency with a great brand and strong management team, as well as a powerful integrated model. As we looked to the future, we wanted to preserve their unique culture and provide them with opportunities to play on a bigger stage. The respective strengths and needs of both companies are clearly complementary, which is what led us to consider this alignment. By giving Deutsch the lead role in North America and access to a strong global network, while at the same time bolstering Lowe’s standing in the vital U.S. market, we believe we will create a more powerful offering and accelerate our growth.”

Sawyer, who is being named North American CEO of Deutsch Inc., a Lowe & Partners Company, indicated that “Tony Wright and I have worked closely together to develop this innovative new model, which leverages Deutsch’s fierce independence and strong culture, while also providing us with access to global tentacles through the new Lowe network, which is a stalwart global federation of creative, independent and diverse agencies around the world. This will allow us to take our business-focused approach to new levels and simultaneously enhance Lowe’s U.S. offering.” Sawyer also announced that Val DiFebo, previously President of Deutsch NY, has been named CEO of the combined Deutsch and Lowe operations in New York. “Val’s been a key part of our success since 1992 and there is no one better to lead a smooth transition or to maximize the opportunities of the combined entity. I know she joins me in welcoming Lowe NY employees and clients to our combined offices at Deutsch NY. In addition, in recognition of their roles in taking Deutsch LA from a local office to a major national player, with an outstanding creative reputation and new business record, Eric Hirshberg and Mike Sheldon are being named co-CEOs of that agency.” Donny Deutsch will remain as Chairman of Deutsch Inc., a Lowe & Partners Company.

“Deutsch is an agency with strong brand recognition, a highly effective integrated model and a track history of long-term success. We are very excited to formalize the collaborative relationship that our agencies have enjoyed for the past few years,” said Lowe Worldwide Chairman Tony Wright. “The Lowe & Partners network that we are building is predicated on strong local agencies servings as hubs, from which we steward the marketing and communications needs of blue chip clients. Deutsch will now serve as one of those hubs, which will result in significant benefits for our existing clients and will also strengthen our ability to attract new global clients.” Wright added that Lowe NY Chairman and Chief Creative Officer Mark Wnek will not join Deutsch Inc., but instead move to a Lowe Worldwide role, focused on certain key multinational clients, while Lowe NY President Sal Taibi will become Partner, General Manager of the new Deutsch NY.

About Interpublic

Interpublic is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, Magna, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald; Campbell Mithun; Carmichael Lynch; Deutsch, a Lowe & Partners Company; Hill Holliday; Mullen; The Martin Agency and R/GA. For more information, please visit www.interpublic.com.

Source: Interpublic Group

Interpublic Group
Philippe Krakowsky, 212-704-1328
or
Jerry Leshne, 212-704-1439
(Analysts, Investors)
 

Posted: October 2009


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