NEW YORK: The Brewery has acquired a minority stake in Clarity PR.
The CEO and founder of Clarity, Sami McCabe, said the deal had been in the works for several months and was signed on October 31. He would not disclose the financial terms of the agreement.
The Brewery network is an independent group of businesses brought together through strategic investments from the integrated comms agency Freuds, according to a statement announcing the deal.
McCabe said Clarity remains independent after the deal.
"[The Brewery] is a group of independent agencies who operate and think independently," he said. "But we have these connections to other agencies that are linked through this group that we can share leads with and learn from and collaborate with."
In addition, McCabe said, the deal allows Clarity to move faster on its growth plan which includes buying other firms.
"I’ve been 100% the owner of the company since day one, and we’ve grown quickly on the back of reinvesting profits," he said. "But having a party like Freuds involved means we can move faster. From a financial backing perspective, it gives us more resources to execute against our growth strategy."
That strategy, McCabe added, calls for acquiring other PR firms fairly soon. Clarity will probably make an announcement before the end of the year, he said.
"We plan to be very aggressive and acquisitive as a direct result of the investment," he said, explaining that Clarity is looking to add capabilities, enter new markets and expand its geographic footprint.
Also, as part of the deal, Clarity takes over the Venice Beach office and six employees of Brew PR in Los Angeles. Brew PR has 10 clients, said McCabe.
"It’s a nice little P&L and very complimentary for the wider business with their focus on tech and media," he said. "They are media relations specialists, so it’s a very good fit for Clarity’s core business and it feels like a natural fit."
Combined, the two agencies will create an $8 million revenue run-rate company, McCabe said. Brew PR Los Angeles personnel have all become Clarity employees. There will be no layoffs as a result of the takeover, which is effective immediately.
A Freuds spokesperson said the Brew PR brand remains part of The Brewery network and its New York and London offices were not part of the deal.
Earlier this month, Clarity announced it was rolling out a financial services practice. In April, former Hotwire EMEA lead Alex MacLaverty became Clarity’s global COO. According to the PRWeek Agency Business Report 2019, revenue grew 47% to $4.9 million at Clarity in 2018.