NEW YORK: The CHR Group has acquired Old Tappan, NJ-based boutique agency Raker Goldstein.
Under the terms of the acquisition, which took place on March 7, MDs Heidi Raker and Stuart Goldstein will maintain their brand and operate from CHR’s headquarters in New York City. The firm’s six-person team will stay on-board with no layoffs as a result of the deal.
CHR’s first acquisition of a PR agency will give it new capabilities, according to Jonathan Zaback, chief strategy officer and partner at the holding company. He said CHR aims to have a "best breed" group of boutiques under one roof to create a one-stop opportunity for clients.
"We have chosen Raker Goldstein to lead CHR’s PR arm, because of [Raker and Goldstein] as people; they are true communications counselors," he said. "Our goal is to bring in other groups to roll into the Raker Goldstein brand, and to expand them geographically; [Raker and Goldstein] will oversee the PR agencies we roll into them."
Through the acquisition, CHR is bringing on all of Raker Goldstein’s clients. There are no conflicts as a result of the acquisition, according to Zaback.
The boutique lifestyle agency has experience advising startups on business development and brand awareness. HP, Microsoft, Nielsen, and Merck are among the clients it has worked with, according to its website. The firm’s client base includes sports and health organizations, b-to-b companies, and CPG corporations.
"We wanted to be a part of CHR, not just for the growth of Raker Goldstein, but for the growth of our clients, and all the different brands CHR brings to the table," said Goldstein.
Raker added that the deal will allow the firm to offer clients "a wider bandwidth of opportunities in terms of penetrating their communities with a wider variety of marketing modalities."
Raker and Goldstein will receive equity in the parent, but they could not disclose further details about the financials of the deal. Both firms declined to comment on the price of the acquisition or Raker Goldstein’s revenue for the past year.
Following the procurement of Stone Canoe in November, the deal represents CHR's tenth acquisition since its founding in 2012.