Cheil Worldwide has acquired Centrade Integrated, top-tier digital marketing agency based in South East Europe
- Centrade Integrated has strong presence in South East Europe with its core strength in data driven marketing solutions
- Cheil continues to build on its future growth through robust M&A activity
Cheil Worldwide posted strong Q1 2018 earnings growth
- Consolidated revenue grew 10% with operating profit increasing 12% YOY
- Cheil looks to expand global business platforms with enhanced digital capabilities
SEOUL, South Korea, May 2, 2018 – Cheil Worldwide, one of the world’s leading marketing communications networks, today announced the acquisition of Centrade Integrated, one of top-tier ad agencies in South East Europe, in a move to strengthen competitiveness in the global market and build business platforms for future growth through actively engaging in M&A activity.
Established in 1993, Centrade Integrated, Romania-based top-tier advertising agency in South East Europe, offers a wide range of marketing solutions from ATL, BTL, Digital to Retail across the whole of Europe with a strong customer base in Romania, Serbia, Croatia, and Hungary.
Centrade Integrated’s greatest strength is that it has been capable of providing customized marketing solutions that fit their client needs with insights from big data driven analysis. The agency serves a wide variety of clients in South East Europe providing digital marketing solutions for P&G, Raiffeisen Bank as well as operating and managing Samsung.com site. Driven by the strong client base, the agency’s digital business posted a significant annual earnings growth rate of over 80% over the past two years, which accounted for 54% in total revenue of last year.
Cheil Worldwide posted a solid growth of 10% in consolidated revenue with 12% rise in operating profit(17% rise in operating profit before income tax) for the first quarter of 2018, and its overseas affiliates have also seen improved performance compared to the previous year. With this momentum, Cheil expects that the addition of Centrade Integrated will help broaden its business platforms across Europe as well as bolster its global business that accounts for 75% in total revenue of the global network.
Cheil Worldwide will continue to push ahead with M&A activity targeting agencies with specialty and capabilities in digital innovations dealing with data, digital marketing, and e-commerce. The global agency will take a differentiated approach by region – it will concentrate on diversifying and expanding business in advanced markets such as the U.S and the U.K, while making endeavor to become the first-mover in emerging markets, including the South West Asia and the Latin America.
Jeongkeun Yoo, President and CEO of Cheil Worldwide, said: “Cheil Worldwide has been committed to transforming itself from a traditional ad agency to an integrated digital creative solutions company. I am confident that the acquisition will help bolster our digital capabilities in the global market.
Radu Florescu, CEO of Centrade Integrated commented: “We are delighted to be fully integrated in the Cheil network. Our past two year collaboration has demonstrated strong results for our clients and we look forward to expanding our digital marketing footprint in the region.”
Meanwhile, Cheil Worldwide has continued to make significant investments in digital media and B2B marketing area by acquiring PSL, Toronto-based B2B marketing consulting firm, and Atom42, UK-based online marketing agency, through Iris, a part of the Cheil network in the UK, last year.
The terms of the deal will not be disclosed.