News Summary
The Highland Group has made a significant move in the marketing industry by acquiring Brandworks Detroit, marking its first acquisition. This partnership aims to enhance service offerings and digital capabilities. CEO Scott Crowley expresses excitement over the match, while founder Jay Kargula transitions the agency into retirement after a successful 40-year career. The acquisition opens new opportunities for growth, employee synergy, and market expansion for both agencies.
Highland Group Expands Horizons with Brandworks Acquisition
In an exciting turn of events in the marketing world, the Highland Group based in Grand Rapids has successfully acquired the Ann Arbor-based agency, Brandworks Detroit. This acquisition was finalized on July 30, marking a significant milestone as it’s Highland Group’s very first acquisition! Exciting times are ahead for both firms as they embark together on a new journey under the moniker, Brandworks Detroit Powered by Highland Group.
The Perfect Match
Scott Crowley, CEO of Highland Group, pronounced that this acquisition feels like a natural fit for both companies. The two agencies share several similarities, especially in their customer base and service offerings. One standout point in this acquisition is that Brandworks Detroit was lacking in digital marketing capabilities, and that’s where Highland Group steps in, ready to supercharge their clients’ digital presence.
A Retirement Transition
For Jay Kargula, the founder of Brandworks, this move is particularly special. After a successful 40-year career in marketing, he was looking for the right buyer to transition the agency into retirement. He found Highland Group to be a perfect match, highlighting that they offered the right mix of capabilities and culture essential for serving their clients well.
Long-Standing Relationships
Since its inception in 2001, Highland Group has been known for its devotion to a wide range of clients, with a portfolio that includes notable organizations such as the Grand Rapids Area Chamber of Commerce and Steelcase. Their focus has generally revolved around branding, digital experiences, and effective communications, primarily serving privately-held companies and global enterprises.
On the other side, Brandworks has been a competitive player since 2009, building strong relationships particularly in the insurance and manufacturing sectors. Their client list includes well-known names like Amerisure and Universal Robots.
Strengthening Detroit Presence
This acquisition not only strengthens Highland Group’s foothold in the Detroit area, but it also opens up opportunities to enhance service offerings. Interestingly, although the Highland Group will continue to operate from Grand Rapids, Brandworks will maintain its base in Ann Arbor as they look for new office space.
Employee Synergy
Before the acquisition, Highland Group employed 27 staff members, while Brandworks had a team of seven. Kargula will play an important role in assisting business development at Brandworks through May of next year, ensuring a smooth transition.
Crowley also revealed plans to add to their employee roster, projecting that their team will grow by two additional members this year while maintaining existing staffing levels until 2025. Meanwhile, Brandworks has the potential to acquire three to four new employees following the acquisition, sowing seeds for a larger team to service their growing clientele.
Looking Ahead
Highland Group is not just stopping here. With long-term goals in place, they are looking to implement a growth strategy aimed at completing one or two acquisitions each year for the next decade. They have their sights set on expanding into markets like Chicago, Detroit, and Indianapolis, which could open up even more exciting opportunities ahead.
Professional Advisers
To ensure a smooth acquisition process, Highland Group had the assistance of advisers, including the Frisia Group and Warner Norcross + Judd LLP. While specifics of the acquisition deal remain undisclosed, the overall sentiment surrounding the acquisition is positively charged, promising a bright future for both Highland Group and Brandworks Detroit.
This acquisition is a prime example of how businesses can grow and adapt in an ever-evolving landscape, providing new opportunities for employees, clients, and the community at large.
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Additional Resources
- Crain’s Grand Rapids
- Wikipedia: Marketing
- MLive
- Google Search: Digital Marketing
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- Built In
- Encyclopedia Britannica: Digital Marketing
- MITech News
- Google News: Marketing Acquisition
