Cossette closed a turbulent chapter in its history this morning during a special meeting of its shareholders in Quebec City. The 38-year old-agency formally approved its acquisition by Mill Road Capital, ending its 10-year phase as a publicly owned company.
The result met with sustained applause from those in attendance. Mill Road’s offer of $8.10 per share values the company at $136 million.
Addressing the assembly in English and French, Cossette president and CEO Claude Lessard said the Mill Road sale marks the third phase of the company’s "corporate journey."
Born in 1972 when six partners bought a Quebec City design firm, Cossette expanded to Montreal and beyond Quebec before going public in 1999.
Lessard said this new phase would be dominated by continued international expansion and a refocusing on the creative product.
"The only reason we went public was to build a [financial] base, and now we have that base. We will just grow it. We’re seeing more and more synergy between the U.S., London and Toronto," he said.
The businesslike tone of the short meeting was broken towards its end when Lessard gave personal thanks to his employees for their efforts during the acquisition process. He held back tears while thanking Pierre Delagrave, president of Cossette Media and Fjord Interactive Marketing and Technology.
"I cannot end this tribute to my team without mentioning that without the incredible and deep loyalty of my colleague and companion of many years, Pierre Delagrave, who decided to stay by my side when this unprecedented event arrived in our life, I would not be standing before you today."
Cossette’s sale process began when former Cossette executives François Duffar and Georges Morin made an unsolicited bid of $4.95 per share on July 20.
"A heartfelt thank you to you, Pierre," Lessard said. "This gesture will never be forgotten."
Also in attendance at the meeting was Thomas Lynch, senior managing director of the Greenwich, Conn.-based Mill Road.
"I grew up hearing about the advertising business," said Lynch, whose mother was an executive Young & Rubicam. "When I graduated from college, it was the only business I was interested in becoming a part of."
While Lynch "went astray" from the agency world after working within the Interpublic network, he has followed the industry throughout his career.
As for the investment firm’s plans for Cossette, Lynch said Mill Road wants to remain hands-off. Freed of the responsibility of reporting quarterly numbers, "the management will be completely liberated to serve their outstanding list of clients.
"The company will exist as it has before," said Lynch. "We neither have the skill or the expertise to run an advertising agency, and no expectation that we would do so… We invested in this management team."
It’s expected Brett Marchand and Gregor Angus will take on increased roles and responsibility in the months ahead as Lessard decreases his day-to-day activities at Cossette.
