Publicis to buy public relations firm

Font Size

Print

Feedback

Email

Discuss

: Publicis Groupe, the large advertising conglomerate, said that it had agreed to acquire Kekst & Co, a public relations firm based in New York that has been behind the scenes of some of the largest and most contested takeovers in history.

Founded by Gershon Kekst in 1970, Kekst & Co has long been the adviser to Kohlberg Kravis Roberts, the giant private equity firm, and is working for Anheuser-Busch in its response to an unsolicited takeover bid from InBev. Terms of the deal with Publicis were not disclosed, but people briefed on it said it was worth about $150 million.

A series of other public relations boutiques that act as consiglieri on big deals and amid crises were sold over the years. Abernathy-McGregor Group was sold to Havas in 2000 and Robinson Lerer & Montgomery was sold in the same year to Young & Rubicam, which is now owned by WPP. Sard Verbinnen & Co was sold to Incepta in 2000, but the firm’s partners bought the firm back last year.

Gershon Kekst, who started his career as a radio reporter before becoming one of the top names in financial public relations, will continue to lead his firm after its sale to Publicis, which is based in France. Kekst & Co will keep its current name.

Kekst & Co partners have all signed retention agreements for three years. As part of the deal, Kekst is expected to open offices in other parts of the country and perhaps internationally. Kekst, which has 70 professionals, has never expanded beyond its office on Madison Avenue.