MDC Partners Acquires Majority Stake in PR Firm Kwittken & Company
MDC Partners owned Kirshenbaum Bond Senecal & Partners from New York has acquired a majority stake in Kwittken & Company, a public relations agency in New York. The deal costs MDC and estimated 10 to 15 million USD, according to the New York Times, a fair deal considering they are acquiring a PR company with a revenue of nearly 10 million dollars and clients such as Better Homes and Gardens Real Estate, McGraw-Hill, and Thomson Reuters.
The move by MDC adds to the growing recognition manifested on Madison Avenue for the increasing use of public relations by marketers to effectively reach consumers. This is the third transaction in five months for MDC Partners involving a public relations agency, and the sixth in the past year. They had previously acquired Sloane & Company in New York, back in April, followed in May by Allison & Partners in San Francisco.
“P.R. is taking on a higher strategic importance based on its unique role in amplifying a brand’s message in today’s digitally focused, social media world,” said Lori Senecal, president and chief executive at Kirshenbaum Bond Senecal.
The newly acquired Kwittken which will activate as an operating unit of Kirshenbaum Bond Senecal & Partners, is currently the second-largest MDC agency after Crispin Porter & Bogusky. MDC adds to their recent portfolio which shows a strong focus on agencies specializing in anything but traditional advertising.
Other than public relations services, the six agencies where they now hold majority stakes also specialize in social media, database marketing, experiential marketing and analytics.
Marketers want “to find firms that can deliver performance,” said Miles S. Nadal, chairman and chief executive at MDC, and public relations agencies are excelling in “understanding the changing dynamics of the marketplace.”