Dive Brief:
- S4 Capital has merged its Media.Monks marketing and advertising services company with Los Angeles creative agency Cashmere, per a press release. Financial terms of the deal were not disclosed.
- The culturally focused agency was founded in 2003 by Ted Chung and Seung Chung and has more than 150 employees. Its clients include Google, Instagram, Facebook, BMW, WarnerMedia, Adidas, Netflix, Disney, Amazon and Apple, and it was recently named Taco Bell's culture agency of record.
- The latest deal by Sir Martin Sorrell's holding company boosts Media.Monks' creative and cultural capabilities at a time when diversity and purpose have become higher priorities in the U.S. and globally, Sorrell said in the announcement.
Dive Insight:
S4's merger of Media.Monks and Cashmere is the holding company's latest deal and one that points to the importance of cultural strategy for agencies and their brand clients as consumer demands for diversity and purpose intensify around the globe, Sorrell explained in a press statement.
"[Cashmere's] ability to translate contemporary culture into compelling content and reach diverse audiences is a rare talent and something we want to integrate at the heart of our content practice," he said.
Cashmere has put its ability to reach younger, diverse consumers at the center of its offering. The Los Angeles agency recently made headlines when it was appointed Taco Bell's first culture agency of record — a move demonstrating how even brands that are adept at marketing around culture need specialized partners to navigate social and cultural nuance.
The merger is S4's latest deal that increases its capabilities and global footprint. The company in January acquired Shanghai-based creative agency Tomorrow to stretch its business in China. It also expanded its data and digital media practice in Latin America and Asia Pacific through combinations with Raccoon Group and Destined, respectively. S4's acquisitive streak could continue, as the company had 500 million pounds in "firepower" to pursue more deals, per its first-quarter earnings report.
When pursuing deals, S4 seeks like-minded companies that demonstrate top line growth; good margins, or a pathway to good margins; no or limited susceptibility to technological change; and management must own a "significant chunk" of the company, Sorrell told Marketing Dive in June.
S4 in August launched a unitary brand by merging its MediaMonks and MightyHive companies into Media.Monks, unifying nearly 6,000 employees across 57 talent hubs in 33 countries. S4 will report half-year results on Sept. 13.
