DraftWorldwide Adds Fuel to Drive Acquisitions

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DraftWorldwide has purchased a Canadian shop to strengthen its international reach as well as offer U.S. clients similar services in its neighboring market.


The acquisition of Fuel Advertising Inc., Toronto, will bolster Draft's operations in that city as well as support Draft Montreal in its effort to climb the ranks of Canada's leading direct marketing agencies. It is Draft's third agency buy in Canada in less than two years. Terms of the deal were not disclosed.


"With this combination, any time a U.S. client is looking for expertise in direct marketing, promotional marketing or digital, we have the ability between Fuel and the Draft operations in Toronto and Montreal to offer them these services in English and French," said Perry Miele, president of DraftWorldwide International Group.


The Fuel name will be dropped in the next six to 10 months, Miele said.


Draft, Chicago, counts Kellogg Co. and American Express Co. as clients of both its U.S. and Canadian offices. Draft last year recorded billings of $2.7 billion.


Fuel, an agency with estimated revenues of $11 million last year, claims clients such as Hudson's Bay Co., Home Outfitters, Ontario Place, Canada Post Corp. and the Ontario Ministry of Tourism.


"The Draft offices here have a lot of strength in financial services and packaged goods, and Fuel was very strong in retail, and that was an opportunity to get into that category," Miele said from Toronto.
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