LOS ANGELES: Ruder Finn acquired The Rogers Group in an effort to strengthen operations on the West Coast, said Ruder Finn co-CEO Peter Finn.
According to PRWeek agency rankings data, in 2010 The Rogers Group produced about $5.3 million in revenue. Finn said that in 2010, Ruder Finn's West Coast office contributed about $4.5 million to the firm's reported $78.1 million in revenue. He expects that, with the merged Los Angeles-based operation Rogers Ruder Finn, the overarching Ruder Finn West will report about $10 million in annual revenue.
He would not disclose the terms of the deal.
Ruder Finn employees will move into The Rogers Group's LA office, which currently houses 20 employees. The combined headcount will be just under 50 staff members. There won't be any layoffs, he said, and as a result of the joint venture the agency is in hiring mode, specifically for its San Francisco office, which is part of Ruder Finn West.
Rogers CEO Ron Rogers will become president of Rogers Ruder Finn. Howard Solomon will remain in his role as MD and EVP of regional operations for Ruder Finn West.
“We've been big in New York for a long time, and I felt it was important for us to strengthen our operations in key markets elsewhere in the US,” said Finn. “I've had a goal of doubling the size of our West Coast operations for a couple of years now.”
He added that Rogers' public affairs and social media expertise, as well as its diverse portfolio, were attractive to Ruder Finn when the agency was looking at a handful of potential targets.
“We do a lot of consumer and tech business on the West Coast, and now we've broadened that with Rogers,” he said.
Rogers Group clients include Bosch, Dole, and Raytheon. It also works with local government but attributes California's recent struggles to the loss of some government-related work and a dip in revenue from $6.1 million in 2009 to $5.3 million in 2010.
“The diversity [of clients] has helped us, but at the same time people are not sure who we are because of that diversity or where our strengths lie,” said Rogers. “Even though the majority of our work is national in scope, we've always been looked at as a local agency. This allows us to really expand.”
He explained that Ruder Finn's experience in travel and technology enable growth opportunities for his business, and, in turn, his firm's expertise in government and social public education campaigns can add value to the joint venture.
Finn confirmed the acquisition has nothing to do with rumors of an impending Ruder Finn split or spinoff, as reported in August.
Ruder Finn's largest clients include Novartis, Bristol Myers Squibb, Jamaica, Logitech, and Hyundai.