TRO Deutschland will by 50% owned by TRO and 50% by CPM, which acquired the agency in 2008.
The agency plans to establish a base near Frankfurt, in neighbouring offices to those of CPM Germany.
TRO chief executive Rob Allen said: "CPM Germany is a thriving field marketing agency, and our colleagues there have been delivering a number of experiential and event management projects that are actually more closely aligned to our own activity in the UK.
"It makes perfect sense to distil the energies and creativity from both companies to produce a more focused and identifiable experiential offering for the German market place."
He added the new agency aims to create a "significant TRO presence in Germany within four years".
It will comprise a team of seven people, headed by Allen as chairman. Two of CPM’s existing directors, Lutz Wegmann and Ruediger Vaelske will take the roles of managing director and board director respectively, and Mike Hughes, chief executive officer of CPM Europe, will fill the remaining board role.
The German team will be supported by the creative team at TRO’s West London headquarters.
Further international expansion
Allen added: "Germany is the largest market in Europe for our business and TRO UK already has a number of global brand clients that constitute potential business opportunities for a German-based operation.
"The TRO name has also been registered in all international markets. Our long-term plan is to further expand internationally, supported in many instances by the existing CPM presence in those territories."