JWT Group and Ted Bates Worldwide have emerged as the top contenders to acquire Kobs & Brady, a Chicago-based direct marketing agency.
James F. Kobs, chairman-chief executive officer, Thursday told this column that either Bates or JWT were ”the most likely” to buy the Chicago agency.
A Kobs & Brady deal is not imminent, but sources suggested a buyout is possible by midyear. The agency, founded in 1979 under the names of principals Kobs and Thomas B. Brady, hadn`t planned to consider outside ownership until early 1988, but the timetable has been moved up.
The agency had 1985 capitalized billing of $72 million, up 35 percent from $54 million in 1984.
Kobs & Brady has had a working relationship since 1983 with Bates, which helped the Chicago agency open a New York office by leasing it space at Bates headquarters there.
Kobs & Brady has acted a subcontractor, providing direct marketing needs, to Ted Bates Advertising/New York for its client, the U.S. Navy Recruiting Command. Additionally, the Chicago agency has worked for a number of other Bates clients, including Avis Rent-A-Car U.S.
JWT Group, parent of the J. Walter Thompson Co. ad agency, the Hill & Knowlton public relations firm and other communications concerns, last fall got into the bidding for Kobs & Brady. JWT has publicly said it wants to expand its presence in direct marketing, an area in which the agency has lagged behind its competition.
JWT and Bates aren`t the only agencies to express interest in Kobs & Brady. ”We`ve talked to 13 of the top 15 agencies,” said Kobs.
As the multinational agencies have realized the importance of direct marketing in the overall communications mix, there have been a number of acquisitions. Included was BBDO International`s acquisition of Marcoa Advertising here.
— Joseph W. O`Donnell, executive vice president of J. Walter Thompson USA and general manager of its Chicago office, will be named chief executive officer of parent J. Walter Thompson Co., sources say. O`Donnell would be based in New York in this post. An announcement on O`Donnell`s promotion as well as other JWT management changes is expected by early March.
— Black & Decker Corp.`s U.S. Household Products Group in Shelton, Conn., appointed McCann-Erickson`s New York office as agency for its household products line, including appliances presently sold under the General Electric name. Annual billings of the line, previously handled by Batten, Barton, Durstine & Osborn in New York, are estimated at more than $20 million. McCann has been an agency overseas for Black & Decker. BBDO still retains a number of Black & Decker assignments, including corporate advertising and power-tool advertising. This column on Jan. 8 disclosed that Black & Decker was reviewing advertising needs for its household products.
On the move: Robert D. Nolan, an executive VP in the creative services division of Leo Burnett USA, also was named to the agency`s board of directors. . . . Bill Stewart appointed national field sales manager, chain drug division, for Beecham Cosmetics Inc.`s Jovan division.
Strictly Personal: Birthday greetings to Frank Parker, Julie Franz, Jim Feeley, Joe Berner, Bob Immen, Tom Rappe, Rob Mancuso and Jim Hansberger.
Even media presentations for advertisers and agencies aren`t complete without a Chicago Bears flavor these days. At a Nation`s Business magazine luncheon at the Chicago Marriott Hotel Thursday, former Bear great Gale Sayers was asked what salary he might command as player today. ”Oh, probably a couple of million dollars,” Sayers responded, but then backed down a bit, saying his salary would be on the present level of such stars as Walter Payton, who probably pulls down close to $1 million annually. Sayers and the Honey Bears were used as a draw for the luncheon and the magazine`s pitch, which had other attendance-building bait including a Caribbean cruise for two worth $5,000. Winner of the cruise was Brian Quinn, a media planner at J. Walter Thompson USA here.
Campbell-Mithun`s Chicago office promoted Lynn Wallace and Gary Verndon to account supervisors, and George Kusch to copy supervisor.
— Needham Harper Worldwide`s Wesley P. Dubin and Dennis Witpen, who now co-direct national broadcast buying for the agency, will assume additional responsibilities for TV programming for the firm`s domestic clients. Dubin becomes senior vice president, director of national broadcast and programming in Chicago. Witpen now is VP, director of national broadcast and programming in New York.
— Ogilvy Group, parent of Ogilvy & Mather and other agencies, reported 1985 net income rose 17 percent, to $30.247 million, or $3.19 a share. Revenues (commissions and fees) from clients were up 14 percent, to $490.486 million, indicating capitalized billing of $3.2 billion.
Tom Buerger, recently Midwest manager of Cosmopolitan magazine, is moving over to Sports Illustrated as an account manager. At SI, Buerger fills a vacancy caused by the recent elevation of David L. Long to national advertising sales manager, based in the magazine`s New York headquarters. Buerger will report to Barry Briggs, who replaced Long here as Chicago ad sales manager. The Cosmo post hasn`t been filled.
William C. ”Bill” Watson, recently VP and director of public relations with Grant/Jacoby, is joining Bob Emery & Associates, a marketing
communications firm, as an executive VP. The move again brings Watson and Emery together, the two having worked at Westinghouse Broadcasting (WIND radio) and at an ad agency. Separately, Grant/Jacoby added Pam Prosch as VP of market research.
George G. Guimaraes, recently president-chief executive officer for Ketchum Advertising in Pittsburgh, will soon rejoin Young & Rubicam in New York as a senior VP and a group director. Guimaraes also will be involved in new business development at Y&R. Moving up to Guimaraes` former Ketchum post is John Fitzgerald, who had been a corporate executive VP of Ketchum Advertising/U.S.
Marjorie Tidmore Bradford, recently manager of corporate media relations for Procter & Gamble in Cincinnati, joins Adolph Coors Co. in Golden, Colo. Feb. 17 as director of corporate communications. She will report to Marvin
”Swede” Johnson, VP of public relations at Coors.
