In July it was announced that M+C Saatchi would undergo a management buyout in Australia and New Zealand, backed by private equity (Parc) and expected to happen on October 1. Today it was announced that the MBO will not proceed.

The M+C Saatchi Group decision follows an extensive review of strategic options for its Australia and New Zealand advertising agency.

These are the statements: From M+C Saatchi Group: “Following constructive discussions, it was ultimately determined that a transaction could not be concluded on terms acceptable to all stakeholders. In light of the decision not to pursue the management buyout, M+C Saatchi Australia and New Zealand is in discussions with clients regarding ongoing work and where appropriate, the option to transition work to another part of the wider M+C Saatchi group. 

M+C Saatchi ANZ will cease to operate.

“This decision relates specifically to the Australia and New Zealand advertising agency business that was the subject of the proposed transaction and does not impact M+C Saatchi World Services, the government services and behaviour change agency, which will continue to operate in Australia and remains unaffected.”

From investment growth firm, Parc: Following a period of due diligence, the proposed management buyout of M+C Saatchi Group Australia and New Zealand, which was to be backed by growth investment firm, Parc, will not proceed. “Adam Pozniak, co-founder of Parc, stated, ‘While we are disappointed the proposed transaction will not proceed, we respect the outcome of the due diligence process. Parc remains committed to identifying and supporting independent, entrepreneur-led agency businesses in Australia and New Zealand. We will continue to explore investment opportunities aligned with our vision of building a modern, independent business across the region that meets marketers’ needs today and into the future.’”