WPP Plc - History

History

Wire and Plastic Products plc was founded in 1971 as a manufacturer of wire shopping baskets. In 1985 Martin Sorrell, searching for a listed company through which to build a worldwide marketing services company, bought a controlling stake of just under 30% at a cost of $676,000. Sorrell had been the financial director for the advertising agency Saatchi & Saatchi from 1977 to 1985, managing its takeovers of companies in the US and the UK. The holding company was renamed WPP Group and in 1987 Sorrell became its chief executive.

During 1986 WPP became the parent company of Picquotware, a manufacturer of teapots and jugs, based in Northampton. In November 1987 a fire destroyed the Northampton factory and production was restarted at Burntwood in Staffordshire. On 25 November 2004 WPP closed the Burntwood factory and stopped manufacturing Picquotware: all assets were sold on 14 December 2004.

In 1987 the company acquired J. Walter Thompson (including JWT, Hill & Knowlton and MRB Group) for $566m. The company listed on NASDAQ in 1988. In 1989 it acquired Ogilvy Group for $864m and in 1998 formed an alliance with Asatsu-DK Inc. of Japan.

In May 2000 WPP agreed to acquire the United States-based advertising company Young & Rubicam for $5.7 billion, in what was at the time the largest ever takeover in the advertising sector. The takeover made WPP the largest advertising company in the world measured by billings and revenue, overtaking Omnicom Group and Interpublic. In 2007 WPP Digital was created to develop the Group's digital capabilities. In October 2008, WPP acquired market research firm Taylor Nelson Sofres for £1.6 billion.

During 2009 WPP reduced its workforce by around 14,000 employees, or 12.3% of its then total staff numbers, in response to the onset of the 2008–2012 global recession.

In June 2012 WPP agreed to acquire the digital advertising agency AKQA for US$540 million.