CJRW of Little Rock said Sunday that it is acquiring Heathcott Associates of Little Rock after more than a year of merger talks between the two advertising, marketing and public relations firms.
In a news release, CJRW Chairman and Chief Executive Officer Wayne Woods said the transaction “combines and further extends CJRW’s expertise and resources.”
The private companies did not disclose financial terms of the deal. Gary Heathcott, the 40-year advertising veteran who owns Heathcott Associates, said that under the agreement, he will serve as a consultant to CJRW.
“I’m looking forward to getting out of day-to-day management responsibilities while still staying involved in the industry that I love,” he said.
The move will combine the operations of the two agencies in CJRW’s downtown Little Rock offices. In a story in Sunday’s Arkansas Democrat-Gazette announcing the deal, Heathcott said eight “key” employees will make the move from his west Little Rock offices to CJRW, bringing total employment at the combined firm to 82.
Darin Gray, president of CJRW, described the merger as a “combination of competencies without redundancies.”
“That’s one of the most appealing aspects of this deal,” Gray said in a news release. “Gary and his staff have served clients in business sectors that, for the most part, we have not been involved in. And, the same is true of our agency with respect to his clients. In essence, we are extending our reach into new sectors and opportunities on the local, national and, potentially, international markets.”
Gray is the former publisher of the Northwest Arkansas Business Journal. He joined CJRW in February. He positioned the merger as in line with the agency’s business development strategy.
“There are essentially three ways to grow a business,” he said. “Expansion of service to existing clients, bringing on new clients and acquiring other businesses. We have been very active in expanding services to existing clients and bringing on new clients in the past several months. This is an extension of those efforts and strengthens our position even further moving forward.”
The merger comes after a tumultuous couple of years for CJRW.
The agency, the state’s largest, has seen dozens of employees leave, along with some key accounts. Key departures include former partner Wayne Cranford and his three sons, Jay, Ross and Chris. Last summer, the Cranfords founded their own agency, Cranford Co.
Others who have left include Rebecca Tennille and Jordan Johnson, who started their own marketing firm in 2013, taking the account for the William J. Clinton Presidential Center with them.
CJRW also lost the account for publicly traded meat processor Tyson Foods Inc. of Springdale, as the company moved contracts out of state following Tyson’s merger with Hillshire Brands of Chicago last year.
Still, the agency retains its largest account, the state Department of Parks and Tourism. Other clients include the University of Central Arkansas, Riceland Foods and Centennial Bank, which is owned by publicly traded Home BancShares Inc. of Conway. Heathcott’s clients include the Honda Motor Co. in Arkansas and Louisiana and the Arkansas State Fair.
In Sunday’s news release, Woods noted changes in how the advertising industry operates.
“Clients no longer just want agencies to act as vendors who merely perform tasks. Instead, they want and need business partners – to assist in strategic planning and to be intimately involved in meeting business objectives,” he said. “This merger provides us with additional and unique resources to help meet those expectations.”
CJRW is currently refurbishing the 21,000-SF Fulk Building at Main and Third streets in downtown Little Rock for its new headquarters. CJRW’s wholly owned film studio, Jones Film & Video, will be moving directly across Main Street into the 7,000-SF former home of Mr. Cool’s Clothing, which has closed.
CJRW says it plans to be in the renovated building by the middle of the year.
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