WPP share price: Ad giant acquires US brand experience agency SET Creative

WPP Plc (LON:WPP), the world’s largest advertising company, announced last week that it had acquired a majority stake in SET Management (SET Creative), a US brand experience agency based in Portland, Oregon. The acquisition is aimed at boosting WPP’s branding & identity division (B to D group), which also includes Addison Group, Brand Union, FITCH, Lambie-Nairn and Landor, among others.

Simon Bolton, co-leader of the B to D group, commented in a statement: “SET creates world class physical and digital brand experiences, making it an ideal partner to Brand Union and FITCH.” Bolton continued: “The three agencies provide a complementary set of services, from brand strategy, to retail, design and events, collectively creating a roadmap for agile omni-channel brands.”
SET serves a number of major clients, including BMW, Google Glass, Arc’teryx, Jordan, Nike, Red Bull and Uniqlo. Last year the company generated revenue of approximately $38 million, WPP revealed, adding that as of December 31, 2014, SET’s gross assets were at $18 million. The UK advertising giant did not disclosed any financial details about the deal.
In today’s trading, WPP shares were down 1.4 percent at 1,454.00p, as of 14:07 BST. The company’s stock has advanced 8.1 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 26, 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 15:19 BST, Monday, 29 June, WPP PLC ORD 10P share price is 1,452.50p.