Oct 31, 2006 6:01 AM, PROMO Xtra, By Betsy Spethmann

Omnicom Group has bought promo shop Colangelo, adding the $26 million shop to its Diversified Agency Services (DAS) division.

Omnicom completed its purchase of Colangelo in mid-October; terms were not disclosed.

Colangelo founder and President Rob Colangelo stays on to run the 13-year-old shop, reporting to DAS CEO Tom Harrison. "I have no plans to move on to any different role at all, for the foreseeable or long-term future," Colangelo told PROMO. "This is a long-term partnership."

The agency keeps its current management team, its name, and its Darien, CT, headquarters. (A move to new office space in Darien, already in the works before the acquisition, will be completed by yearend.) Colangelo also keeps its nine-year-old Chicago office, which primarily serves Kraft Foods, and handles some regional work for Diageo.

Execs staying with Colangelo are Executive Director Bob "Bubba" Terry, General Manager Tom Lynch, Executive Creative Director Dan Stevenson and Executive Marketing Director Susan Cocco.

Colangelo himself has been a proponent of independent agencies, struggling at times with the difficulty of pitching against shops owned by deep-pocketed holding companies. Selling the agency to Omnicom gives Colangelo "the best of both worlds. We can now provide our clients with the autonomy of an independent agency and the benefits of the largest and most respected agency network in the world: global opportunity, tremendous resources in consumer insights and research tools, and fabulous training," Colangelo said.

"They've been extremely respectful of our name and celebrating our spirit of independence," Colangelo added. "Working within DAS lets us continue with our long-term mission of providing innovative marketing ideas across all disciplines under one roof."

Omnicom was impressed by Colangelo's multi-disciplined work: "It is ahead of many in the industry and is continuously mastering new, innovative and relevant marketing and communications ideas across all disciplines under one roof," Harrison said in a statement.

The acquisition presents no client conflicts, Colangelo said. "Clients we've talked to so far think it's terrific news. It's a great next step for the organization."

Colangelo ranked No. 23 in the 2006 PROMO 100, with 2005 net revenues of just under $26 million, up 29% from 2003. The shop has won accolades for its work on Schick's launch of Quattro for Women and Quattro Power for men, which won a PRO Award earlier this month for Best Use of Promotional Advertising (PROMO Xtra, Oct. 12, 2006).

Omnicom has been financially healthy, with net income 9.5% to $177.1 million for the quarter ended Sept. 30; nine-month net income rose 9.1% to $586.8 million.

Omnicom has a stable of strong promotion agencies, including The Marketing Arm, Alcone Marketing Group, TracyLocke, TPN, The Integer Group and Radiate Sports & Entertainment (including GMR Marketing and Pierce Promotions & Event Management).

"CRM" work, including promotion, accounts for about 35% of Omnicom's total revenues, second only to advertising at 43%. U.S. work accounts for just over 55% of Omnicom's total revenues.

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