Montreal agency Substance and Toronto’s Church + State are partnering in a bid to establish a new, national holding company. Terms of the deal were not disclosed.
Following a search for a Toronto-based partner that started last February, Substance has taken a minority stake in Church + State, which has also invested in the Montreal agency as part of the deal.
Following a search for a Toronto-based partner that started last February, Substance has taken a minority stake in Church + State, which has also invested in the Montreal agency as part of the deal.
The formal relationship followed past experiences the agencies had working together, including a winning pitch for a pharmaceutical advocacy organization Innovative Medicines Canada, said Church + State president and CEO Robin Whelan.
“We had worked together in the past and there was an immediate synergy between the partners and the teams working on the account,” said Whalen. “We realized then that we shared values and, when Substance started their official search for a Toronto partner, we already had that synergy.”
“We spoke with Church + State from the get-go, so the process rapidly went into discussions and, while we were discussing, we won two deals [together],” added Natalie Lariviere, executive vice-president of strategy and operations at Substance. “It felt like it was a natural fit.”
While both agencies will remain independent under the new holding company structure, they will pool capabilities to deliver a more rounded offering to the clients of both operations. According to Lariviere, Church + State brings strength in strategy, creative and branding, while the Montreal agency adds proficiency in media, data and performance.
Substance also enables Church + State to offer more “authentic” French language communications to its clients when they are looking to speak to francophone Canadians, added Whelan.
“Whenever Toronto-based agencies are asked about their French capabilities, unless they’re an agency in a holding company, they’ll typically work with somebody to translate or maybe adapt the English-language work,” she noted. “Rather than just bringing in those ideas that are already baked, we feel our team will work better to deliver a more authentic solution.”
While the agencies have not yet officially named their holding company, they’re also not in any rush to do so, Whelan told The Message.
“As agencies that believe in the power of a brand, we’re just making sure that we do it right,” she explained. “Your brand is an asset, and we want our asset to live forever, so we’re going through all of the steps.”
