The Grey Group announced yesterday that they have agreed to acquire a majority stake in the largest independent advertising agency in Peru, Circus Peru SA (known colloquially as simply “Circus”). The Grey Group is owned by holding company behemoth WPP, and is amongst the largest global communications companies in the world, so it makes sense that it would go after only the most successful agencies, and there are few young South American agencies as successful as Circus. Indeed, according to the 2013 Global Effie Index Ranking, Circus is the third most effective agency office in the world!
Grey Peru will be integrated into the Circus group and will be rechristened as 'Circus Grey'
Circus was founded in 2008 out of its headquarters in Lima, as a full-service, integrated marketing company. The agency achieved a revenue of $12.1 million last year, and has already developed a number of subsidiaries, including Circus Interactive, Circus Retail, Circus Experience, the design company Brand Lab, and Carne, a second advertising agency. Once the acquisition is finalised, Grey Peru will be integrated into the Circus group and will be rechristened as Circus Grey, a name which trades on both companies respected brands. There will be over 200 individuals employed at Circus Grey, who will serve such notable clients as Procter & Gamble, Grupo Credito, Grupo Falabella, Claro and San Fernando, among others. Juan Carlos Gomez de la Torre, President and Chief Creative Officer, and Marco Milesi, CEO, the management team at Circus, will continue in their roles at the new company.
James R. Heekin III, Chairman and CEO of the Grey Group, is “Delighted to welcome Circus to Grey Group.” He feels that the move “Represents another step forward,” in expanding their “Capabilities and footprint in the fast-growing Latin American region," and is heavy on the praise regarding the new acquisition, referring to Circus as “A premier total communications company, renowned for its creativity.” Grey's Latin American CEO and President, Alain Groenendaal, meanwhile, has “Known and worked with the principals of Circus,” and has watched them keenly as the agency began building a name for itself. He believes that the merger “Will give Grey a stronghold in one of Latin America's most dynamic economies” and the Grey network, which will in turn, “Empower Circus to serve Grey's multinational clients on a regional scale."
According to the 2013 Global Effie Index Ranking, Circus is the third most effective agency office in the world!
The feeling is mutual on the other end of the deal, as Marco Milesi, CEO of Circus believes the partnership will make both parties stronger. He says that not only will Circus “Gain access to Grey's incredible network and resources,” but that Grey will benefit from their “Record of impressive growth and award-winning creative output." Juan Carlos Gomez de la Torre, President and Chief Creative Officer of Circus, feels the companies are a good fit because of their shared values. He quotes Grey's motto; 'Famously Effective Since 1917,' which he says meshes with the Circus philosophy, as they too “Believe in work that taps into pop culture and achieves great effectiveness through creative brilliance."
Benjamin Hiorns is a freelance writer and musician from the UK. The only thing he knows about Peru is that it was the birthplace of Paddington Bear.