TMP Worldwide Advertising & Communications’ North American operations have been sold to Veronis Suhler Stevenson, a media-focused private equity and mezzanine capital fund management company for $45 million by Monster Worldwide.
TMP is one of the top three recruitment advertising agencies, along with the Bernard Hodes Group and J Walter Thompson.
“The sale of our business in North America is consistent with the earlier divestments of our TMP Worldwide Advertising & Communications businesses in Europe and the Asia Pacific region,” Andrew J. McKelvey, Monster’s chairman and chief executive officer said in a press release Thursday.
Michelle Abbey will become president and chief executive officer of the new organization.
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Monster anticipates recording a loss of $120 million to $133 million due to the sale.
“Over the last eight or 10 years, revenue from employment advertising has gone down because the revenues are in the job-board listings,” says Rick Fletcher, president and founder of HRchitect, a human capital management consulting firm. Fletcher says the ad agencies made much of their money from print. “They were getting royalties whenever there was a print ad. Health care is the only industry that has been [positive] on the print side.” — Ted A. Knutson