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Monday, July 29, 2013

Padilla Speer Beardsley to Acquire CRT/tanaka

Padilla Speer Beardsley announced today that it has signed a letter of intent to acquire long-time partner CRT/tanaka, creating one of the top 10 independent agencies in the country as measured by the public relations industry. Upon close, the agency will be called PadillaCRT, with nearly 200 employee-owners in Minneapolis, New York, Los Angeles, Virginia and Washington, D.C. and annual net fee income of more than $30 million U.S.
PadillaCRT will focus on delivering cutting-edge, results-driven integrated marketing and communications campaigns across both traditional and emerging media channels. The agency will have deep expertise in food & beverage, health care, business-to-business marketing, consumer products & services, manufacturing, technology, agribusiness, recreation and other sectors, and award-winning capabilities in Branding, Research, Corporate and Investor Relations, Creative & Digital, Crisis Management and New & Social Media. Clients include BASF, Merck, UnitedHealth Group, Girl Scouts of the USA, 3M, Barnes & Noble College, U.S. Highbush Blueberry Council, CarMax, Wines from Rioja (Spain), Land O’Lakes, Cargill, Rockwell Automation, Ditch Witch, RTI Surgical, Hass Avocado Board and SAP. 
“We’re creating a unique agency that clients will value and prospects will want on their short lists,” said Padilla CEO Lynn Casey, who will also serve as chair and CEO of PadillaCRT. “Combined, we’ll have a continued commitment to superior client service, deep industry experience in high-growth sectors and a range of specialties not commonly found in independent firms.”  
The two firms have been long-time partners and have collaborated on several client assignments and joint employee professional development programs. Both firms are founding members of the Lumin Collaborative, the industry’s first multi-agency think tank. In addition, they have both received numerous local and national awards for strategic programs, client service and workplace culture. 
“This combination makes strategic sense for our clients and our employees,” said CRT/tanaka CEO Mark Raper, who will serve as president of PadillaCRT. “We know each other well. We have a shared commitment to a collaborative, employee-ownership culture that translates into superior client service. By joining forces, a great next-generation agency will be born.”  
CRT/tanaka employees will join Padilla’s existing employee stock ownership program (ESOP), creating one of the largest employee-owned agencies in the country. The deal is expected to close in late August. Financial terms were not disclosed.