Powers & Associates is about to acquire rival Cincinnati shop Sive/Young & Rubicam, the agencies said.
The deal is expected to close in early January and would create an agency with approximately 50 full-time employees and $50 million in total billings. The agency, which will keep the name Powers & Associates, will be headed by founder and president Charlie Powers. Sive/Y&R's president Mike Kitei, 62, may serve as a consultant. Terms of the deal were not disclosed.
Kitei said he spoke with four potential buyers in the past year and found Powers & Associates to be the best match.
"It was just a deal whose time was right," he said. "It's an opportunity to add solid critical mass for both parties."
Acquired by Y&R in 1977, Sive was a wholly owned subsidiary until 1994, when five Sive/Y&R officials purchased a majority interest. The new agency plans to maintain connections with Y&R's Media Edge, but Y&R's 10 percent stake in the business was purchased by Powers. The price Powers paid for 61-year-old Sive/Y&R was not disclosed.
Powers, a Sive alumnus who learned the trade from the agency's founder, Leonard Sive, said the agency acquisition has been a long time coming. He was outbid by Y&R in 1977. "The Sive agency has been a favorite of mine for a long time," Powers said.
Combining the strengths of the two agencies should help Powers & Associates pursue larger national accounts, he said.
Founded in 1986, Powers & Associates has a client roster including Independent Insurance Agents of America and Cincinnati Financial Corp. Sive/Y&R handles Baldwin Piano & Organ Co. and Favorite Brands International. Sive/Y&R will move into the Powers & Associates offices in Cincinnati.