MIAMI: Mike Valdes-Fauli has sold a minority stake in Pinta, his Miami-based Hispanic comms firm, to advertising shop Chemistry Communications.
Valdes-Fauli described the deal as a "multi-million dollar transaction" in which Chemistry acquired a significant minority ownership of Pinta.
"[It’s] not the entire company but it’s sizable enough so that we are vested literally and figuratively in each other’s success," he said. Valdes-Fauli declined to disclose revenue numbers for either agency.
Valdes-Fauli said he began discussing the deal with Ned Show, CEO of Chemistry, about six months ago and the transaction closed in early July.
"We were approached initially by [Show] and, to be candid, I was not in any hurry to explore a partnership unless it was a really, really good fit," Valdes-Fauli said. "It was not something I was desperately seeking."
Neither firm will change its name and Valdes-Fauli retains his CEO title.
"For the most part, both structures, brand names and titles stay the same," he said. "It behooves both agencies to maintain the Pinta brand as we’ve carved out a name for ourselves in the industry."
The two firms have approximately 140 employees total and Valdes-Fauli said there will be no staff reductions as a result of the deal.
Valdes-Fauli said Pinta’s core competency is PR but over time the agency became an integrated shop. Chemistry’s digital and creative talent deepens those capabilities. In turn, Chemistry can now take advantage of Pinta’s U.S. Hispanic expertise.
"What is so important to Pinta as well as Chemistry is they both have a very unique culture," he said. "Chemistry has offices in Pittsburgh and they have a Midwestern sensibility and very much understand the core of America. Their other primary office is Atlanta, which is a Mecca for African-American culture. And Pinta is bringing Miami, the center of the U.S. Hispanic experience, to the deal."
Pinta was created in 2014, after the JeffreyGroup spun off its Hispanic operations and renamed it Pinta. Valdes-Fauli was a partner in the firm with Jeffrey Sharlach, the chairman and founder of JeffreyGroup. Valdes-Fauli said he bought out Sharlach’s interest in Pinta last November.