Deal Makes Hispanic Ad Agency in Coral Gables No. 1 in U.S.

FLORIDA (By Jeffery D. Zbar, Sun Sentinel) February 25, 2004 -- Fausto Sánchez never imagined the agency he created with business partner Aida Levitan back in 1986 would become the largest Hispanic advertising shop in the United States.

But Monday's news that Publicis Sánchez & Levitan had merged with sister agency Bromley Communications of San Antonio, put the Coral Gables agency on top of a growing demographic. Chances are, the agency's growth isn't done yet.

"This really makes us a large player within the Hispanic scope, and could present many more opportunities for growth," said Sánchez, who becomes executive creative director and executive vice president of the agency, now renamed Bromley Communications.

Before the merger, Publicis Sánchez & Levitan had been the nation's seventh-largest Hispanic agency in 2002 with revenues of $12.2 million, according to Advertising Age magazine's 2004 Agency Report. Top clients include Nestle, Chivas Regal and BellSouth. Bromley billings topped $17.7 million, Ad Age reported, with clients including Burger King, Coors Brewing Co. and Continental Airlines. The next-largest Hispanic agency now, according to the report, is The Bravo Group, a division of Young & Rubicam, with 2002 revenues of $27.9 million.

Thoughts of a merger began in late 2002, when Levitan and Bromley Chairman and CEO Ernest Bromley chatted at a meeting of the Association of Hispanic Advertising Agencies. The two agencies were both owned in part by Paris-based Publicis Groupe. By last October, the two executives had created a business plan for merging their operations. In November, they presented the plan to Susan Gianinno, Publicis USA's chairwoman and CEO, and John Farrell, president and CEO of Publicis' specialty advertising and marketing services unit.

With no client conflicts and strong synergies between Sánchez & Levitan's creative, grassroots and promotional specialties, and Bromley's strong creative and research capabilities, Gianinno approved the merger.

"This brings together our holistic approach to marketing," said Levitan, who becomes vice chairwoman and chief communications officer of Bromley Communications and president of the Miami office. "Publicis is not obsessed with advertising. They look at consumers to see which channels of communications most effectively work with the target consumers."

The merger also grows the number of offices under the Bromley marquee. Sánchez & Levitan brings 75 employees with offices in Coral Gables, New York, Dallas and Los Angeles, to Bromley's 80 employees in its San Antonio office. The addition of Miami brings a more South American and Caribbean flavor to the agency's employee base, she said. While layoffs aren't expected, Levitan said some workers likely will choose to leave.

The merger will strengthen the media buying capabilities and power of the larger firm, Bromley said.

"This just furthers our media group's buying capacity, strength, negotiations and added values for our clients," he said.

As for Sánchez, he's anticipating even more growth, especially as Hispanic influence grows among American consumers, government and business.

"Growth tends to occur quickly during mergers and acquisitions," he said. "America's been changing. It's more culturally diverse every day. Now there's another large agency like we've become that will contend with this huge growth of Hispanics in American society."