TBWA Buys Stake in South African Youth Agency

The South African division of ad agency network TBWA\Worldwide has acquired an 80% stake in Johannesburg-based youth marketing consultancy HDI Youth Marketeers, for an undisclosed sum. The firm's management will retain the remaining 20% of the company.

HDI was founded in 1996 by CEO Liesl Loubser (pictured), to connect brands with people aged between the ages of three and 23. The company has its own Insight & Research unit which conducts qual and quant projects across all youth market sectors, while also running the Sunday Times annual 'Generation Next' study, and offering access to a panel called the Junior Board of Directors. Feedback from the unit is used to drive the firm's Communication & Collateral division, which offers idea generation, communication strategy, ideation workshops, advertising and other communications.

HDI has 40 staff and generates revenues of between R30m ($2.8m) and R50m ($4.7m) a year. TBWA says the acquisition will further enhance its own presence and capability in Africa, and provide clients with the ability to reach the young markets in Kenya and Nigeria via HDI Youth Marketeers' existing partnerships in the two countries.

Derek Bouwer, Group CEO of TBWA\South Africa, comments: 'HDI Youth Marketeers gives us a presence in what is becoming an increasingly important market segment and speaks to the youthful nature of South Africa's demographic profile. The depth of talent and experience within the business was one of the key drivers of the purchase but the transaction also makes financial sense as it helps us tap into a market segment in which we haven't previously had a presence.'

Web sites: www.tbwa.com and www.hdiyouth.co.za .