McCann-Erickson Worldwide, the world’s second largest advertising agency, is in advanced negotiations to buy 40% of Kesher Barel. The deal is estimated at $10 million, according to a company value of $25 million. Kesher Barel refused to comment on the report.
Kesher Barel is owned by Nero Holdings, a partnership made up of Avner Barel, Arie Rottenberg, Zvi Friedman and Zaddik Bino. Aylon Shiloach, agency general manager Kesher Barel is also a partner in the agency.
It is not clear, at this stage, whether the return on the sale will be reinvested in the agency.
Following the 40% sale, the agency is expected to be absorbed into the multinational, which may bring in new accounts from McCann-Erickson Worldwide’s client base.
McCann-Erickson Worldwide, is part of the Interpublic group, which has an annual turnover of $15 billion. McCann-Erickson’s annual turnover is $9 billion. Among the agency’s major clients: Coca Cola, Unilever, Nestle, General Motors, Gillette, Johnson & Johnson’s, Campbell and others. McCann-Erickson, which owns 115 advertising agencies around the world, is the largest advertising agency outside the US.
Kesher Barel’s total account turnover is $40 million, and is expected to reach $45 million by the end of this year. The agency’s clients include Tnuva, Bank Hapoalim, Teva (in part), Hogla-Kimberly, Shikun u’Pituach, Lucky Goldstar, McDonald’s, Electra, Witco (Lever Israel), Wissotsky, Carmel Mizrahi and others.