The print and design giant acquired Loewy Group on Tuesday (19 July) creating a company that Writtle believes could achieve a £100m turnover in 2011.
Writtle's all-share buyout brings together Loewy's design agencies Epoch, Williams Murray Hamm, The Team and Seymour Powell, brand consultancy Branded and PR specialists speed and Writtle Holdings point of purchase printer Arken, design agency Beyond Communications packaging manufacturer Connect Packaging, creative design agency Creo Retail Marketing and its subsidiary Creo Print and Production, pre-press specialists Maglabs and Magnet Harlequin and design business 20/20.
Richard Saysell, managing director at Creo, who is also a director at Writtle Holdings, told PrintWeek that there would be no change for the Writtle businesses, while the only change Loewy's businesses would feel was an additional freedom.
He said: "We run a very decentralised management structure; it is simply about backing the management team and letting them get on with business. We don't believe a direct management structure is successful, is stifles entrepreneurialism.
"We like our companies to feel like they own the business and from our point of view it can only be a positive for the Loewy businesses."
Although the businesses will continue to operate on an independent basis, they will offer cross-brand services where appropriate.
An additional £4.5m of capital was raised by shareholders of both companies and this will be used for further growth, either through acquisition or capital investment, from next year.
According to their most recent figures, Writtle Holdings had a turnover of £35.6m to 31 December 2010, while Loewy, which hasn't filed its 2010 results yet, had a turnover to 31 December 2009 of £39.5m.
Loewy chairman Will Whitehorn, who will become Chairman of Speed Communications as well as joining the board of Writtle, added: "We had identified that there was a need to expand in the long-term. The two businesses are extremely complimentary and we will be able to make a lot of group-wide offers, it was a good idea to bring the two together."
