Euro RSCG Combines Magnet, Middleberg Brands
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Euro RSCG Combines Magnet, Middleberg Brands

Euro RSCG Worldwide is combining two of its New York-based public relations brands, Magnet Communications and Euro RSCG Middleberg. The combined business will be called Euro RSCG Magnet and will be led by David Kratz, chief executive officer.

Paul Holmes

NEW YORK—Euro RSCG Worldwide is combining two of its New York-based public relations brands, Magnet Communications and Euro RSCG Middleberg. The combined business will be called Euro RSCG Magnet and will be led by David Kratz, chief executive officer. Middleberg founder Don Middleberg will be chairman.

The restructuring will be effective April 1. Euro RSCG is a unit of Havas, which owns several midsize PR firms in the U.S.—others include Abernathy MacGregor and the former Noonan Russo—but does not have a major national brand to rival those controlled by other holding companies such as WPP, Omnicom and Interpublic.

The merger of the two firms will not create a top 10 firm, but it will give Havas a single U.S. brand with revenues estimated to be in excess of $25 million (an estimate based on 2001 numbers; the two firms no longer publish revenues).

Katz will be joined on the management team by Middleberg’s Aaron Kwittken, co-president and chief operating officer; Magnet’s Paul Jensen, co-president and chief strategy officer; and Patrick Resk, chief financial officer.

According to a EuroRSCG statement, “As a result of the combination, Euro RSCG Magnet will have significant critical mass, a full spectrum of corporate communications, investor relations, healthcare and financial services capabilities, and enhanced technology and consumer offerings. The move doubles the size of the new company’s New York office and fortifies its national network of offices in Washington, D.C., Chicago, San Francisco, Pittsburgh and Southern California.”

Magnet, which was formed through the merger of Kratz & Jensen and Creamer Dickson Basford, has expertise in consumer marketing (and food in particular) and technology. Middleberg, which made its name as a dot-com PR firm, has been diversifying its business into areas such as change management and corporate communications.

Clients of the combined entity include Thomson Corporation, IBM, Johnson & Johnson, Walgreens, Gartner, Symbol Technologies, D&B, First Health, Cantor Fitzgerald, International Paper, TowersPerrin, JVC, PCS, U.S. Center for Disease Control, U.S. Department of the Treasury, Heinz, Bayer, and Transitions Optical.

Says Kratz, “I am delighted by the opportunity to create a best-in-class PR agency. Our senior management team brings deep and complementary expertise. Euro RSCG Magnet promises to be a different kind of strategic communications company, one that tackles marketing and communications problems with creative business thinking; one that believes ideas should supersede communications disciplines, and ultimately provides the kind of unbiased, breakthrough communications solutions that help clients win.”

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