Landor/ Enterprise stay separate

Enterprise IG and Landor Associates will continue to compete against each other, following the joining of their parent companies in the $4.7bn (£2.9bn) acquisition of New York advertising giant Young & Rubicam by WPP Group last Friday.

Dismissing suggestions that two of the world’s leading identity consultancies may be merged, WPP Group chief executive Sir Martin Sorrell says: “We have a vigorous competitive outlook and pitching will be encouraged. I don’t want one tribe.”

Enterprise IG, which has 720 employees worldwide, topped the Design Week Top 100 league for the second successive year in 2000. Landor, with 839 staff worldwide, declined to submit figures for this year’s listing, but finished 12th in the UK and second globally in 1999.

Enterprise IG produced fee-income of £45.4m in the UK and £99.2m globally, according to the 2000 results, while Landor’s fee-income according to the 1999 Top 100 was £6.8m in the UK and £53.9m globally, £21.9m behind Enterprise IG at the time.

Graphics specialist Marsteller, part of Y&R’s public relations giant Burson-Marsteller, is also expected to continue operating as an individual brand. It currently has 26 staff in its London office, which produced fee-income of £3.6m according to the 2000 Top 100. With a further 27 staff in Paris, New York, Pittsburgh and Chicago, the consultancy’s global fee-income was £5.8m.

WPP Group – now the world’s largest communications services player – will continue to be headed by Sorrell.

Y&R chief executive officer Tom Bell will, however, be replaced by his colleague and chief financial officer Michael Dolan once the deal has been completed.

Estimated pre-tax savings as a result of the merger are expected to exceed £20m annually.

Sorrell says: “This transaction creates a worldwide leader. The two organisations are highly compatible. We share a common philosophy and culture of providing clients with integrated solutions to their marketing needs, and seek to add value to our clients and our people.

“At the same time, the two complement one another from a client, functional and geographical point of view,” he adds.