What’s in a new corporate name too often results from compromise, making sure egos are satisfied in the merged companies and turning to the computer to whip up a moniker. Or taking a stab at a name that might just sound good to shareholders.
As The Leo Group and MacManus Group, two privately held advertising-communications companies, march to the altar in a deal expected to be closed in January, no doubt there will be some give-and-take sessions among principals on what the name should be.
Sometimes, the task is fairly simple: Just combine most of the names. For example, PricewaterhouseCoopers, which, incidentally, falls only four letters short of the alphabet, following the merger of Price Waterhouse and Coopers & Lybrand. The jury is still out on how long the new name will last and when it should be shortened.
Then, there’s Pactiv Corp., announced Thursday as the new banner of Tenneco Packaging, a spinoff of Tenneco Inc. “Pac,” of course, sounds like the first third of “packaging.” Even an outsider might be able to make a case for “activ,” suggesting this Lake Forest-based company is a bustling or go-go business.
A Pactiv spokesman explained, “We’re in the packaging business, and the new name means we’re forward-looking, active, modern and innovative.” That’s a reasonable response.
But nevertheless, in Corporate America, post-merger identity programs can be more challenging than getting both companies to agree to a merger.
As for the ad agency biz, there have been instances when egos have blocked mergers. One problem: Whose name goes first on the door.
A few decades ago, Chicago agency Clinton E. Frank Inc. had agreed to a merger with Campbell-Mithun in Minneapolis. But the deal was scuttled when the late Clint Frank, a Heisman Trophy winner, wanted his name first on the new banner.
As for The Leo Group and MacManus, both sides have enough communications talent to come up with a name, which should include “Leo,” for the founder, the late Leo Burnett.
This new privately held firm is headed for an initial public offering. Among other publicly held ad-communications firms, there’s WPP Group, parent of J. Walter Thompson Co., Ogilvy & Mather and Hill & Knowlton. WPP stands for Wire & Plastics Products, a still-operating U.K. maker of shopping carts, acquired by Britisher Martin Sorrell before he went on his buying spree in the U.S.
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Western acquiring Bottway: Interpublic Group of Companies’ Western Initiative Media unit is acquiring Manhattan-based media-management firm Bottway Group, which will be absorbed by Western, which has global annual media billing of $10 billion plus. This impending buyout was tipped in this column Oct. 20.
Arnold bows out of Serta: Boston ad agency Arnold Communications, once a leading contender for the creative portion of Serta Inc.’s $15 million ad account, has bowed out of the competition, which still includes Grey Advertising-New York, DDB Chicago and Euro RSCG Tatham, insiders say.
– Chicago-based Bender, Browning, Dolby & Sanderson (BBDS) acquired Freckmann Marketing Group, a Cedarburg, Wis., marketing communications firm, which will be absorbed by the parent’s Milwaukee office. Walter Freckmann, president-creative director of Freckmann Marketing, becomes managing director of BBDS Milwaukee while also assuming the post of director of graphic services and production for the Chicago and Milwaukee offices. The acquisition doubles the staff and volume in the Milwaukee office, says Dick Sanderson, the Chicago-based president-CEO of the agency with 1999 capitalized billing forecast at $65 million, exclusive of Freckmann. BBDS clients include Schlage Locks, a Colorado Springs, Colo., unit of Ingersoll-Rand, a Woodcliff Lakes, N.J., firm, for which the agency also does corporate advertising; and Midwest Express Airlines.
Strictly Personal: Birthday greetings to restaurateur Jack Weiss, 50 (Coco Pazzo); Kristina Price, 30 (United Airlines); John Moore, 40 (Ammirati); Patricia Young, 44 (water reclamation commissioner); James J. Coulas Sr., 85 (Weldbend Corp., Argo); Mark T. Malin, 36; Angie Vasic, 32; and designer Ami Koenig, 49.
Personnel: James Lowe rejoined DraftWorldwide Chicago as senior VP-group account director . . . Mark Tester named senior director of sales-new business development, Chicago Convention and Tourism Bureau . . . Lisa DeCook promoted to an account director, Wunderman Cato Johnson Chicago.