Toronto-based One Advertising has added to its core capabilities with the acquisition of Brandworks. Financial terms of the deal, announced today, were not disclosed.
One CEO Ted Boyd told Marketing that the seeds of the deal were planted shortly after the former 58Ninety acquired Due North Communications and created One in July 2012.
“We started conversations with the Brandworks principals and realized rapidly that they had a very similar philosophy to us at 58Ninety and Due North,” he said. “As we were building the One team and culture, [Brandworks] seemed very philosophically aligned with where we wanted to take the agency.”
Brandworks’ strong design and branding capabilities are an ideal complement to One’s existing creative capabilities, said Boyd.
One also acquires Brandworks’ equity partnership in Worldwide Partners Inc. (WPI), the world’s largest network of independent, owner-operated agencies. The WPI relationship offers One access to a worldwide network of independent agency partners should a client need or opportunity arise, and a reciprocal opportunity for other WPI agencies, said Boyd.
Established 19 years ago, Brandworks employs just over 25 people, all of whom will relocate to One’s office in downtown Toronto – increasing the agency’s staff size to just over 80 people.
Brandworks’ senior management team of Ron Chapman, Michael Clancy and Lorne Kirshenbaum will all join One’s senior executive team, led by president Jill King and senior vice-president/creative director Karen Howe.
While some of Canada’s leading independents have been snapped up by multinationals in the past couple of years (John St. the most recent example), Boyd said there is still an opportunity for Canadian independents to thrive.
“We’re in a very fast-paced business environemnt where entrepreneurial and nimble agency partners are required. I think the future’s bright for independent agencies in that context,” said Boyd.
Brandworks’ current client roster includes Nikon, the government of Ontario, Ontario Dental Association and the Ontario Lottery and Gaming Corporation (OLG). There are no client conflicts as a result of the merger, said Boyd.
On the new business front, Boyd said the agency is “always interested” in opportunities, but stressed that the immediate priority is existing clients. “From the day [58Ninety] came together with Due North a year ago, our focus has really been on our existing clients and driving value for them and focusing on growing their business,” he said.
