AdWorld News

Donnelly Takes Stake in McConnellsintegrated

Ad industry veteran Pat Donnelly is to take a stake in one of Ireland's leading agencies, McConnellsintegrated. Donnelly will also head up the the agency's media buying and planning business MCM and he will join the board of the company.

It is understood that Donnelly has been in talks with the agency for a number of months but that a final agreement was only struck over the past week. Under the terms of the deal, Donnelly is expected to acquire a small shareholding in McConnellsintegrated in the order of 10%. He will also participate in an "earn-in" which, in several years time, will leave him with a sizeable stake in the company.

Donnelly's involvement with McConnnellsintegrated is a huge coup for the agency. As one of the industry's most respected figures, his experience includes stints at the Media Bureau, Irish International, Hunters, Arks and All Ireland Media (now Carat Ireland) the agency he founded in 1985 and sold to Aegis group for a reputed €22m in 2002. He was also the founder of the ill-fated Channel 6 in 2005, which was later sold to TV3 in 2008 for a €1.

Donnelly is also executive chairman and shareholder in Core Media, the media buying alliance that is made up of Starcom Mediavest, Zenith, Clear Blue Water and McConnellsintegrated. Core Media is one of the top three media trading groups in the country. As it was only launched last year, it was slow to take off and get recognitition from media suppliers, including the likes of RTÉ. It is also understood Core has still to receive official recognition from RTÉ.

Donnelly's decision to tie-up with McConnellsintegrated comes at an important time for the Dublin-based agency. Like most other advertising agencies, it has been hit by the downturn in advertising and marketing budgets as well as a number of account losses. It has also shed over 30 staff over the last twelve months and last year a number of former management executives jumped ship to set up their own agency, Boys and Girls.

The agency, which is headed up by Damian Bell, was acquired by AFA O'Meara in 2008 for around €35m. It's largest shareholder is Stuart Fogarty. The most recent set of accounts for the agency show that it had a turnover of €35.6m in 2008 and a pre-tax profit of €1.3m.

Clients of the agency include IDA Ireland, AIB, BMW, Ballygowan, Mini, Knorr, Irish Rail, Tesco, Thomas Cook, O'Briens, ESB, Innocent Smoothies and Irish Distillers.

It is understood that Donnelly has already taken up his new position.