Active Display owner bought by WPP

Global advertising giant WPP is buying STW, the new owner of Australia’s biggest point-of-sale outfit Active Display Group. WPP is upping its 23.5 per cent stake in STW to 60 per cent, although it is believed no cash will be changing hands as the deal is being presented as a merger. STW is a massive marketing agency, owning some 75 different agencies. It bought Active from the Gittus family 18 months ago for an initial $29.7m with a further $4.6m in deferred payments and more performance related undisclosed amounts  in in a move to create an end to end service. For Active it gave it access to a huge number of agencies. Active also owned half of AFI Branding.

New owner: Active Display Group

New owner: Active Display Group

The new deal will give Active – which is a positive contributor to the STW bottom line – access to even more clients. STW was hit by a $75m loss in the first half of the year. Its shares are now in a trading halt at 72.5c. When STW launched as John Singleton Advertising in 199 its shares were trading at $1.25.

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