Equity Marketing gave a lift to its promotion capabilities last week by signing a deal to acquire Upshot from bankrupt Ha-Lo Industries.
The deal gives Los Angeles-based Equity the expertise–and reputation–in strategic planning and creative development it has been trying to establish in-house. Until now, the company largely has been regarded as a premium house, due to its work in that area for flagship client Burger King. The QSR’s business accounted for 66 percent of Equity’s $144.3 million in 2001 sales. (That total is down from 80 percent in 2000.)
The announcement came about 10 days after “Advertising Age” reported that BK issued an RFP to find a second premium supplier; the chain also had been sourcing toys through Irvine, CA-based Alcone Marketing until last fall. BK’s promotion agency of record, DraftWorldwide, launched a premium division late last year.
PROMO’s 1999 Agency of the Year, Chicago-based Upshot had a less-than-stellar three-year tenure under faltering promotional products supplier Ha-Lo, Chicago, which filed for bankruptcy protection last summer (XTRA, July 31, 2001). Upshot had net revenues of $22.6 million in 2001. Upshot co-founders John Kelley and Carol Griseto will leave the company soon after the deal closes, leaving president Brian Kristofek in charge of the operation. The pair had considered a management-led buyout until opting for an outright sale.
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