COLUMBUS, OH: Ad agency Fahlgren is buying Lord, Sullivan & Yoder, a marketing communications and PR firm that reported $6.3 million in gross income last year.
Terms of the transaction are not being disclosed.
Fahlgren had gross income of $17.4 million in 2002. In addition to its Columbus headquarters, it has offices in Toledo, OH; Cincinnati; Charlotte; Parkersburg, WV; Atlanta; Tampa, FL; and Fort Lauderdale, FL.
What name the new combined firm will operate under and who will fill key management positions is still being worked out. Principals from each firm hope to have the deal finalized by the end of May.
The two Columbus-based companies have known of each other for years, and even share one account - the Ohio State University medical center.
"We've developed a comfort level with their people," said Steve Drongowski, Fahlgren CEO. "It just seemed like a real additive combination."
Fahlgren is seeing more and more RFPs calling for integrated communications services, he said. The merger is about "more than size. It's about making us more competitive than either of us could have been individually," he explained.
Neil Mortine, president of LSY's PR operations, said, "As the recession deepened, I think more and more agencies were looking for partners. This just seemed like the best match for us. It really strengthens our advertising offering, and it's a tremendous opportunity for the PR firm. (Fahlgren has) a lot of ad clients that need PR."
LSY hopes to go after PR accounts in the various cities where Fahlgren has offices, he said. Having offices in other parts of Ohio will also strengthen LSY's ability to pitch for statewide PR business.