FOOTE, CONE & BELDING AND I&S FORM ASIA-PACIFIC ALLIANCE;
FCB MOVES TOWARD COMPLETION OF GLOBALIZATION PLAN
CHICAGO, Nov. 21 /PRNewswire/ -- Foote, Cone & Belding Communications, Inc. (NYSE: FCB) and I&S Corp. (privately held) have announced an agreement in principle and have exchanged a letter of intent to form an alliance of the two firms, first within Japan and eventually extending throughout Asia-Pacific on a country-by-country basis. The combined resources of the two companies would make it the fourth-largest communications group in the region.
Under the new proposed alliance, FCB and I&S will establish a new communications group in Japan called FCB/Japan, to be held in majority by FCB. I&S, as the primary minority shareholder, will be the primary source of professional services to FCB/Japan from its nearly 1,000- member staff. Tokyo-based Asian Advertisers, a firm that FCB has been associated with in Japan since 1988, also will hold a minority interest in the venture.
FCB Chairman and Chief Executive Officer Bruce Mason stated, "After years of thoughtful and careful exploration of alliance opportunities in the important Asia-Pacific region, FCB is pleased to have found the right partner in I&S. I applaud my predecessor Norman Brown for his extraordinary foresight and contributions that have culminated in this promising relationship."
Craig R. Wiggins, chairman of FCB International, explained, "Our alliance with I&S in the Japanese market is a major step toward the completion of FCB's globalization plan. The well-established resources and talent of I&S, together with those of the FCB global network, will most certainly provide superior service to our existing and future clients in just the strategic manner that FCB seeks: outstanding local, indigenous talent, deeply rooted in the marketplace."
The FCB/Japan board of directors will have FCB, I&S and Asian Advertisers representation, proportionate to each company's equity in FCB/Japan. FCB/Japan, to be headquartered within I&S' Tokyo office, will be headed by FCB's Ted Block as the president/chief executive officer, who will retain his responsibilities as executive vice president/area director for FCB/Asia-Pacific.
Clients served by FCB/Japan at the onset will include AT&T Network Systems, California Raisin Advisory Board, Garuda Indonesia Airlines, and National Semiconductor. Additionally, other FCB multinational clients are considering moving assignments to the new group.
The agreement, still subject to finalization of specific details, was approved by the FCB board of directors meeting held at agency headquarters on Nov. 20, 1991. FCB/Japan will begin operations on Jan. 1, 1992.
Foote, Cone & Belding Communications, Inc. is one of the largest marketing communications companies in the world, with a network of 173 offices in 40 countries and 1990 worldwide billings (including Publicis FCB Europe) of more than $5 billion.
FCB and I&S Alliance: Key Executive Biographies.
Craig R. Wiggins
Craig Wiggins is chairman of FCB International and is on the boards of directors of Foote, Cone & Belding Communications, Inc., and its European network Publicis-FCB Communication.
An 18-year veteran of FCB, Wiggins played a critical role in establishing Publicis-FCB, FCB's May 1988 alliance in Europe with French-owned Publicis, having most recently served as chairman and CEO of Publicis-FCB Europe. Under Wiggins' leadership, FCB's European presence has grown from the 14th-ranked network, with 42 offices in 14 countries, to the number-two network, with 105 offices in 15 countries.
Previous to the alliance, Wiggins was president of FCB/Europe and, prior to that, was executive vice president and general manager of FCB/San Francisco, FCB's top-ranked operation in the Western United States. He headquarters in New York.
Ted Block is president and chief executive officer of FCB/Japan in addition to his responsibilities as executive vice president/area director for FCB/Asia-Pacific. He headquarters in Tokyo.
Block's 16-year career at FCB began in San Francisco, where he started as media director. He transferred to account management in 1983 and has worked on Cloroix, Levi Strauss, and the California Raisin Advisory Board -- a multinational client in the Asia-Pacific. Throughout his FCB career, Block has been heavily involved with international marketing.
FCB and I&S Alliance: I&S Fact Sheet
Established: Oct. 1, 1986, through merger of Dai-Ichi Kokoku-sha (an advertising agency also known as Ichi-ko) and Seibu Promotion Network (SPN), a large retail and entertainment group
Meaning of I&S: Stands for the initials of the two companies that merged, and the corporate philosophy: intelligence and strategy
Key Executives: Chairman Masato Suzuki; President/CEO Komakichi Sugiyama
Billings: Estimated U.S.$1 billion in 1991; U.S.$810 million in 1989
1990 Rank: Number 7 in Japan (source: Advertising Age)
Clients: Philips, Boeing, Cotton Council, Manpower, Parker, Guiness, Marantz, Hertz, France Telecom, Murai Eyeglasses, Hong Kong Trade Council
Headquarters: 1-5-3 Muromachi, Nihonbashi, Chuo-ku Tokyo 103 Japan
Ownership: Private - Saison Group (41 percent), Yomiuri Shimbun (41 percent), employees (6 percent), directors (4 percent), various TV stations (4 percent), DIK/Hakuhodo (4 percent)
/CONTACT: Gina Greer, 312-751-3520, or Annice Tatken, 312-751-3519, both of Foote, Cone & Belding/
(FCB) CO: Foote, Cone & Belding Communications, Inc.; I&S Corp. ST: Illinois IN: ADV SU: SH -- NY081 -- 5963 11/21/91 14:02 EST