Capital Strategies acquires FGI arm

RALEIGH, NC: PR and public affairs specialists Capital Strategies last week announced plans to acquire the Marketing Communications Group of FGI, a Chapel Hill, NC-based research and marketing company.

RALEIGH, NC: PR and public affairs specialists Capital Strategies last week announced plans to acquire the Marketing Communications Group of FGI, a Chapel Hill, NC-based research and marketing company.

RALEIGH, NC: PR and public affairs specialists Capital Strategies

last week announced plans to acquire the Marketing Communications Group

of FGI, a Chapel Hill, NC-based research and marketing company.



With the acquisition, Capital will triple in size, from dollars 1.6

million in revenue and 18 employees to dollars 5 million in revenue and

50 employees.



President Ken Eudy, who adds the title of CEO, said the deal makes the

agency one the larger - and possibly the largest - North Carolina-based

PR firms.



While he would not disclose the cost of the FGI unit, Eudy said the deal

was for stock. The acquisition, which is Capital’s first, will be

completed by the end of the year.



’Our clients have been making inquiries about brand-positioning,

identity and design capabilities,’ said Eudy. ’We have been very strong

in PR and public affairs, but we really needed to add marketing.’



Eudy, who held the post of VP of PR for FGI 10 years ago, said talks

only became serious over the past two months. The firms have worked

together in the past, and kicked off a project for the North Carolina

State Library in July.



Eudy cited only two client conflicts that result from the acquisition:

Capital clients Blue Cross and Blue Shield of North Carolina and Central

Carolina Bank, and FGI clients QualChoice (an HMO) and Triangle

Bank.



Since Triangle Bank is merging with Centura, Eudy said that business was

likely to be lost anyway. FGI MD Karen Albritton will lead the marketing

communications division.



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