Publicis Groupe Tuesday signed an agreement to acquire GP7, a São Paulo-based advertising agency focused on emerging social classes as well as travel and tourism. The agency will be renamed Publicis Red Lion (a unit of Publicis Brazil), and will be aligned with Publicis Worldwide.

Post the investment, GP7 CEO, João Fernando Vassão, will become Managing Director of Publicis Red Lion and will henceforth report to Orlando Marques, CEO of Publicis Brazil.

Orlando Marques, CEO Publicis Brazil noted that with this acquisition, Publicis adds to its portfolio a highly qualified expertise that this unit has in tourism market and also in knowledge about behavior of emerging social classes consumption.

Marques said the acquisition adds to Publicis Brazil important and representative clients, for whom Publicis can offer the integrated communication services, advertising, digital and Below The Line disciplines.

GP7 was established in 2004 and employs 40 communications specialists. The agency offers the full range of advertising and communications services including creative work, corporate communication, strategic planning, media buying and marketing services.

On his part, João Fernando Vassão, Managing Director at Publicis Red Lion reiterated that together, the firms will be able to accomplish two main objectives: deliver a powerful structure and network for its current clients, supporting their growth in Brazil and overseas, and also offer a strong knowledge on how to connect brands to emerging social classes, since all of the firm’s clients have been building strong business cases for these consumers.

GP7’s key clients include CVC Turismo (largest tour operator in Latin America), Car System (car satellite monitoring system), Yakult (dairy products), Webjet Linhas Aéreas (airline company), GJP Hotels & Resorts, and GJP Participações (investment company).

This transaction follows Publicis Groupe’s acquisition of a majority stake in the Talent Group last week, as well as 2010 operations such as acquiring Taterka (minority share) and AG2. Bolstering its presence in Brazil remains a key strategic priority for Publicis Groupe.

Publicis Groupe has nearly 1,200 employees in Brazil and is present through its global networks Leo Burnett, Publicis Worldwide, Saatchi & Saatchi, VivaKi, and MSL GROUP.

Jean-Yves Naouri, Executive Chairman of Publicis Worldwide, said GP7 is marks another step forward in Publicis Worldwide’s growth strategy in Brazil which is now its third regional market. This acquisition not only bolsters Publicis’ teams but also broadens the range of services it can offer its clients at local and international levels, said Naouri.

27th April 2011