M+C Saatchi’s Parc-backed Australia and NZ management buyout will no longer proceed

M+C Saatchi Group has today announced that, following an extensive review of strategic options for its Australia and New Zealand advertising agency, the previously announced management buyout of the business, backed by private equity, will not proceed.

Following constructive discussions, it was ultimately determined that a transaction could not be concluded on terms acceptable to all stakeholders.

In light of the decision not to pursue the management buyout, M+C Saatchi Australia and New Zealand is in discussions with clients regarding ongoing work and where appropriate, the option to transition work to another part of the wider M+C Saatchi group.

This decision relates specifically to the Australia and New Zealand advertising agency business that was the subject of the proposed transaction and does not impact M+C Saatchi World Services, the government services and behaviour change agency, which will continue to operate in Australia and remains unaffected.

Growth investment firm Parc, which was set to back the buyout, has also issued a statement following a period of due diligence.

Says Adam Pozniak, co-founder of Parc: “While we are disappointed the proposed transaction will not proceed, we respect the outcome of the due diligence process.

“Parc remains committed to identifying and supporting independent, entrepreneur-led agency businesses in Australia and New Zealand. We will continue to explore investment opportunities aligned with our vision of building a modern, independent business across the region that meets marketers’ needs today and into the future.”

Parc will not be commenting further on the proposed M+C Saatchi Group transaction.

Pictured (L-R): Simon Wassef, Chief Strategy Officer; Jack Playfair, Head of Sport & Entertainment; Dani Bassil, CEO; Jeremy Hogg, Executive Creative Director; Anita Zanesco, Chief Client Officer; Remi Couzelas, Managing Director, Re.