GfK Group Acquires US-based ARBOR

The GfK Group has acquired the business of ARBOR Inc., USA, effective retroactively from 1 January 2004. ARBOR provides ad hoc research services, specializing in communication and brands.

GfK now has four US-based subsidiaries, GfK Custom Research, V2 GfK, Martin Hamblin Global Healthcare and GfK ARBOR. Projected aggregate sales of more than $110m in the USA in 2004 would lift GfK into the US' top fifteen MR agencies.

ARBOR was established in 1963 and is based in Media, PA. The company executes tracking surveys on brand value and brand dynamics, conducts studies on market segmentation, the evaluation of brand image and corporate image and product evaluation. With 92 employees, ARBOR generated sales totalling $US 24.9m in 2003.

ARBOR's Managing Directors Dr. Martin R. Lautman, Dr. John Wittenbraker (President) and Joseph C. Zoll (Chief Financial Officer and Chief Operating Officer) will continue in their roles and issued a joint statement regarding the merger, as follows: 'First, with a strong partner at our side, we intend to expand our market research technologies, ensuring their world class status. Second, we believe that it will be beneficial to be part of an international network, enabling us to provide clients with international services; and, third, being part of a larger group of companies, we can now offer our employees new career opportunities'.

In 2003, the USA had a global share of 38% of the MR market, or USD 6.3 billion, and nearly 45% of the world's $US 323bn advertising spend - the acquisition of ARBOR will raise GfK's profile as a provider of research services in the advertising and marketing sector in the US.

According to Heinrich A. Litzenroth, the Management Board member responsible for GfK's Ad Hoc Research division, 'GfK ARBOR's excellent resources will facilitate our long-term strong positioning among the other major players in the USA ... and give us additional expertise in brand value research, thereby securing a highly competitive position for GfK in the global markets'.

Lautman says that GfK was the partner of choice because of its 'comprehensive know-how of the European markets, which we now can service with our US-based expertise'.

ARBOR's web site is at www.arborinc.com and GfK's at www.gfk.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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