NEW YORK: The Morris & King Company acquired lifestyle consumer agency Workhouse Publicity.
Financial terms of the deal were not disclosed.
It's a move that Morris & King co-founder and principal Judith King said she hopes will increase agency revenue by 25% to 40% over the next two years.
Though King would not disclose the agency's 2009 revenue, she said it was lower than the annual average of about $2 million to $2.6 million per year.
As part of the deal, Morris & King absorbed Workhouse and also named Adam Nelson, founder and CEO of Workhouse, the president and head of the consumer group at Morris & King.
“One of the things that really excites folks is expanding our lifestyle and consumer group,” said King. “[Nelson is] a hard worker who knows everyone. We're so in the weeds, so it's marvelous to have an outside guy come in.”
She added that Workhouse's clients, including Budget Travel and global chocolate retailer Chocolate Bar, were also appealing.
Working with an unnamed consultant, Morris & King approached a number of agencies about an acquisition. Morris & King and Workhouse, which had not had a prior relationship, began formal negotiations in January.
Effective May 1, Workhouse will move its employees to Morris & King's office in New York. Nelson said some of Workhouse's 12 employees will be laid off.
“We're transitioning some of our employees, but some will be let go,” said Nelson. “For the most part we're keeping our core team intact ... As well, I hope to enliven our loyal client-base and bring to them the level of service they have not had before.”
The acquisition closed April 19.