WPP share price flat as ad giant agrees to invest in Germany’s Hirschen Group

on Jun 16, 2015
Updated: Oct 21, 2019

WPP Plc (LON:WPP)is investing in a leading independent agency group in Germany , as part of its strategy of developing its services in fast-growing and high value markets. The UK advertising giant today announced that it had agreed to acquire a “significant minority stake” in Hirschen Group, a company that provides integrated campaign services including advertising, public relations, public affairs, consulting and strategy.

Founded in 1995, Hirschen Group employs 500 people across nine offices in Germany. According to WPP’s statement, the German company’s revenues for last year were around €36.3 million. As of December 31 Hirschen Group’s assets stood at approximately €17 million.
Following the deal, which is subject to regulatory approval, Hirschen Group will partner with J. Walter Thompson Company, a wholly owned subsidiary of the British firm. WPP noted that Hirschen would maintain its independent position and would continue to be run by its existing team.
The investment will allow WPP to strengthen its business interestsin Germany, which is its fourth-largest market, behind the US, the UK and Greater China. WPP generates around $1.4 billion in annual revenue in the country, where it employs around 7,000 people.
In today’s trading, WPP shares were flat at 1,463.65p, as of 13:49 BST. The company’s stock has risen 8.8 percent since the start of the year.
The 27 analysts offering 12 month price targets for WPP have a median target of 1,665p, with a high estimate of 2,035p and a low estimate of 1,250p. As of June 12, 2015, the consensus forecast amongst 31 polled investment analysts covering WPP had it that the company will outperform the market. This consensus estimate has been maintained since October 16, 2009, when the sentiment of investment analysts improved from “hold”.
As of 15:08 BST, Tuesday, 16 June, WPP PLC ORD 10P share price is 1,461.50p.

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