Headstream will specialise in working with clients in the entertainment, FMCG, automotive and travel industries.
The new company will launch next month and will operate from the agency's Southampton and London offices. It will be overseen by consultant Kate Williams, who moves from Lawton's tech practice to lead an initial five-strong team.
Headstream launches with clients including United International Pictures, for which it is to promote up-coming film The Holiday, staring Kate Winslet and Jack Black.
The new agency will have the back-up of both Lawton's own PR arm and sister agency Five by Five, which has recently rebranded from Lawton E-Marketing, said Lawton PR director Julius Duncan.
Headstream refers to a stream that is the source of a river or another body of water, explained Duncan.