WPP Case Study

WPP is the world's second-largest communications services group, with activities ranging from advertising and media investment management to specialist communications. It employs over 100,000 people (including Associates) in over 2,000 offices in 106 countries. In 2006, WPP's billings were £30.1bn and revenues were £5.9bn.

Buchanan Communications was retained by WPP in 1986, soon after Sir Martin Sorrell acquired a stake in Wire and Plastics Products, a UK manufacturer of wire baskets which was to be his chosen vehicle for building a worldwide marketing services group.

WPP's initial acquisitions were in 'below-the-line' marketing services in the UK and the US, before going 'above-the-line' with the $566m acquisition of J. Walter Thompson Group. This ground  breaking deal - an "unsolicited" takeover of a people business - required fast-moving financial media handling on both sides of the Atlantic, and Buchanan provided WPP with the requisite 24/7 cover to help WPP successfully win over shareholders and management.

The relationship has been 24/7 ever since, with WPP operating across all time zones and being corporately active whether on small acquisitions addressing faster growing areas or on the larger transactions such as The Ogilvy Group for $864m in 1989, Young & Rubicam for $4.7bn in 2000, Grey Global Group for £1.52bn in 2005 and the more recent $650m purchase of 24/7 Real Media.

The successful client relationship since 1986 led to WPP's acquisition of Buchanan in 1997 in a five year earn-out. A further five years on and the relationship is as strong as ever, with Buchanan providing a strong supporting role to WPP's own in-house team headed by Feona McEwan.