PRmoment Podcast: The February Pitch Review

Ben Smith and Andrew Bloch reviewed the UK PR pitch and M&A market in February, noting that the pitch market was "steadier" with clients taking longer to decide, while agency M&A was "booming" with high demand and competition driving up prices for agencies around the £20 million enterprise value, especially those leveraging AI.

PR pitch wise we saw significant client wins for Edelman, Words and Pixels, Brazen, W, and Hope&Glory, and key acquisitions included Resident acquiring Okay Cool, Future Group acquiring Alfred's assets, Kink acquiring Lobby PR, Havas acquiring a 51% stake in Acento, and Source Code acquiring Rally Point.

WPP's strategy was discussed, as it shifts into four unified business units, including WPP Creative under which PR brands will sit.

Details

• February PR Pitch and M&A Review Introduction: Ben Smith welcomed Andrew Bloch to the February review of PR pitches and mergers and acquisitions (M&A) within the UK PR scene, noting the discussion would cover the biggest wins and mergers from the last month. Andrew Bloch is a lead consultant at the new business consultancy firm AAR and a partner at PCB Partners, where they advise on buying and selling marketing services agencies.

• Overview of the PR Pitch Market in February: Andrew Bloch described the pitch market in February as "steadier" and more positive than anticipated, noting that agencies are starting the year on a firmer footing compared to the mood at the end of the previous year. While new business is moving and there are big wins, clients are taking slightly longer to make decisions, which stretches pipelines but does not stop them outright.

• Summary of Public Relations M&A Activity: Agency M&A is currently "booming," with activity exceeding what Andrew Bloch has observed for some time. Buyers are arriving from all directions, including private equity and strategic buyers. Demand is outstripping supply, particularly for agencies with an enterprise value around the £20 million mark, as this level attracts interest from every type of buyer.

• M&A Trends and Industry Confidence: Competition at the sub-£20 million enterprise value is driving up prices and deal velocity, partly due to a rise in entrepreneurial buyers using finance to execute "buy and build" strategies. Although AI is reshaping the industry, buyers are becoming more confident, recognizing that agencies leveraging AI intelligently are commanding big premium multiples. Buyers are seeking clarity regarding an agency's point of differentiation, but revenue dips are not necessarily deal killers if the business shows strong normalized profitability and strategic fit.

• Edelman's Hat-trick of Client Wins: Edelman started the year positively with three significant wins, including SXSW London, the UK version of the Texas event focusing on tech, music, film, and innovation. The agency also won Ikos Group, a luxury Mediterranean resort group, and regained the Singapore Tourist Board account. A key factor in the Singapore Tourist Board win was Edelman's proprietary GEO AI solution, which helps brands manage visibility, highlighting AI as a major opportunity in PR.

• Words + Pixels' Strong Start to the Year: Words + Pixels has won eight clients since the beginning of the year, showing that hot agencies win a disproportionate amount of work. Their success is notable in their corporate practice with clients like Enthesa, Aurora and Comply Cube.

• New Client Wins in Tourism and B2B/Consumer Services: Black Diamond, which specializes in the tourism sector, won a UK brief for Zurich Tourism, positioning the city as a cultural city break destination. Additionally, Smoking Gun won the Blue Light Card account, which provides discounts to 5.7 million members across the NHS and emergency services, covering B2B and consumer media relations.

• Brazen and Tangerine Secure Major Accounts: Brazen won the consumer and influencer brief for Tesco's insurance and money services, with GEO being a major part of the work, reflecting a trend of PR firms winning big social and influencer briefs. Tangerine was appointed by Villeroy & Boch, a bathroom manufacturer, which expanded their brief after the client acquired Ideal Standard..

• The Academy and Fleet Street Client Success: The Academy secured a win with Shokz, a brand of open-ear headphones, which includes product launches and talent activation as they are a London Marathon sponsor. They also won Edgewear Personal Care, covering consumer PR for brands like Bulldog and Wilkinson Sword. Fleet Street won a trade brief for Suntory beverage, the company that owns popular drink brands like Lucozade and Orangina.

• Splendid's Comeback and PR Agency One's Win: Splendid has continued its good run winning the social strategy, PR, creative, and partnerships brief for Rowntree's lollies to elevate the brand's new positioning. Separately, Manchester-based PR Agency One won Cake Box, a large British bakery franchise, securing a consumer and influencer brief.

• W's Hat-trick of Wins: W has started the year strongly with two notable wins. The first is Bayer, which owns brands like Caniston and Berocca, presenting a big opportunity for organic growth as they own many other brands. W also won Virgin Atlantic as their creative communications agency of record, focusing on culture-led campaigns and positioning the brand at the intersection of travel and culture.

• Hope & Glory's and Earnies' Wins: Hope&Glory secured a brace of wins, including ITV and Global's new weekly prize draw called "The Birthday Draw," to build awareness and drive signups. It also won Asics, covering consumer and influencer communications for its performance running and core performance sports ranges. Meanwhile, Earnies won a specific category within Domino's for its newly launched chicken dip offers.

• Ivy Restaurant Group and John Doe's Client Acquisitions: Leeds-based agency Hatch won the consumer and B2B PR brief for ten Ivy Restaurant Group locations across Northern England, the Midlands, and Scotland, utilizing its regional knowledge for this localized brief. John Doe was appointed by Meta's Reality Labs division, which handles the wearable portfolio (e.g., Rayban Meta and Meta Quest), moving from a small project last year to a retained basis.

• WPP's Restructure/Merger Discussion: Andrew Bloch described WPP's move as shifting from a collection of independent agencies into a single unified business, creating four core units (media, creative, production, and enterprise solutions) to simplify organizational complexity. PR brands will sit under WPP Creative, with a focus on a data-first model, which could enhance efficiency and collaboration. However, the risk remains that PR might lose its independence or become a support function for advertising.

• WPP's Communication and Strategy: The move is seen as a more intelligent solution than simple consolidation, reflecting WPP's forward-facing view on market changes like AI and platforms. The process is phased over three years, and the announcement has been well communicated and thought through, possibly due to the involvement of Michael Frolich, WPP's Chief Marketing & Corporate Affairs Officer.

• Residence’s acquisition of OK Cool: The American-based, private equity-backed network Resident acquired OK Cool, a social creative agency of about 100 people with offices in London, New York, and Sydney, and clients including Nike and TikTok Shop. Residence is building a network of complementary businesses that retain their independent identities, fitting OK Cool's edgy, entrepreneurial style.

• Future Group's Acquisition of Alfred's Assets: Future Group came to the rescue of the agency Alfred, which had entered prepack administration at the end of the previous year due to legal claims and reduced revenues. Future Group bought Alfred's brand, assets, and client contracts (including past clients like Amazon and Netflix) for £132,000, presenting an opportunity for the Future Group to revitalize the brand.

• KINC acquisition of Lobby PR: Kinc acquired Lobby PR, a fashion PR firm, as its first strategic acquisition under a plan to form a collective of "culture-centric founder-led agencies" called the Culture Comms Group. This transaction is typical of entrepreneurial buyers using cash to expand their base, and the two agencies have complementary client lists, including Adidas, Converse, and Southern Comfort.

• Havas's acquisition of a stake in Acento Public Affairs: Havas acquired a 51% stake in Acento, a 50-person public affairs company with offices in Madrid, Barcelona, and Brussels. Acento will rebrand as H Adstore Acento and join the H Adstore global network, consolidating Havas's geographical presence in the booming public affairs sector.

• Source Code's Acquisition of Rally Point: Source Code acquired Rally Point. Such micro-acquisitions are sensible moves that allow larger agencies to bolt on talent, clients, and expertise in areas where growth might otherwise be challenging.