Mitchells buy Starcom WA business from local directors

The long-rumoured deal between Mitchell Communication Group and the local directors of Starcom has finally been concluded, with Mitchells announcing the acquisition of the WA media agency headed by Alan Matthews.

Rumours of a sell out to Mitchells have existed for over six months. To effect the sale, the four local shareholders bought back Starcom MediaVest’s shareholding in the Perth operation and then sold the business and assets to Mitchell & Partners (WA) Pty Ltd and Mitchell Communications Group Limited.

Stuart Mitchell, Chief Executive Officer, Mitchell Communication Group described the acquisition as strategically significant.

“We expect this acquisition to add $70 million per annum to Mitchells’ billings and see us become the biggest player in the WA marketplace,” he said. “It further bolsters our management capacity and industry standing, allowing Mitchells to offer its clients superior strategy, great service and negotiate the best rates”.

As part of the acquisition Mr Alan Matthews has also entered into a 5 year employment agreement with the Group, clearing the way for current Mitchells WA manager, Alex Pekish, to return to Melbourne. Pekish came to Perth to establish the local office but retained his national television rate negotiation role, a pivotal one for Mitchells. Pekish has strong ties to Melbourne and is understood to be keen to return.

At the same time as Micthells announced the acquisition, Starcom MediaVest Group announced it will establish a wholly-owned business in Perth following the sale of its share in the joint venture business.

“Starcom is committed to providing the highest standard of service to our national clients which includes offering full service offices in each capital city. We have decided to fund our own office in Perth to achieve this goal,” Starcom Chief Operating Officer Chris Nolan said.

The announcement said Starcom is actively recruiting in Perth and will be fully operational in the near term. There is intense speculation it will be headed up by disaffected local former director, Wes Grant, who left the local operation earlier this year but has retained a link with Starcom nationally.