MDC nabs majority stake in 72andSunny
Holding company MDC Partners announced December 15 that it has acquired a majority stake in agency 72andSunny. Financial terms of the deal were not disclosed, but Miles Nadal, chairman and CEO of MDC, indicated it follows MDC's acquisition formula of buying 51% of the business, plus a down payment and additional financial consideration predicated on future performance.
72andSunny is an integrated agency with traditional and online capabilities, as well as social media expertise and a reputation for creative work. The Los Angeles-based agency's clients include Hewlett-Packard Co., CKE Restaurants and Nike, which it won this year.
The agency's founders – creative directors John Boiler and Glenn Cole, as well as design director Robert Nakata – cut their teeth at Wieden & Kennedy before founding 72andSunny.
“They are one of the most extraordinarily talented agencies we've come across,” Nadal said. “They have the right formula for today and tomorrow.” He cited 72andSunny's “exceptional management team and probably the best trajectory in our business we've ever seen, as well as the high caliber and scale of its clients. All those things made us believe they were right for us.”
No management changes are expected and 72andSunny is retaining its brand. “Our approach is to invest in proven winners with a long term track record,” Nadal said. “We're there to provide financial and human resources to accelerate their approach to provide a growing range of services and expertise to help their clients grow.”
MDC has been on an acquisition tear. The deal marks the company's thirteenth acquisition in 2010, and MDC spent more than $100 million collectively on those deals. Nadal said his goal is to spend another $100 million next year.