Saatchis to Quit Top Posts at Ad Agency They Created
LONDON — Charles and Maurice Saatchi, the brothers who created the world’s biggest advertising agency and “sold†Prime Minister Margaret Thatcher to British voters, will step down as joint chief executives, the company said today.
London-based Saatchi & Saatchi Co. PLC said Robert Louis-Dreyfus, 43, will take over as sole chief executive of the agency as of Jan. 1.
The British company that built its reputation on masterminding Prime Minister Thatcher’s first election campaign has been a rumored takeover target since reporting a disappointing earnings outlook for the year.
Saatchi has been struggling to integrate the acquisition of a host of smaller agencies made over the last few years.
The company said Maurice Saatchi, 43, will remain group chairman and Charles, 46, retains a seat on the board. A spokesman said the reorganization was aimed at strengthening the company’s management.
Last June the group reported a 68% fall in interim pre-tax profits to 20.2 million pounds ($31.3 million). It blamed slow advertising growth, unfavorable exchange rates and escalating costs as management focused on consolidating its recent acquisitions, which included the U.S. group Ted Bates.
Louis-Dreyfus joins Saatchi after selling IMS International Inc., the market research firm he built into the second largest in the world, to Dun & Bradstreet Corp. of New York for $1.7 billion last year.
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