Paritee Moves Into Germany With LHLK Gruppe Acquisition

(MENAFN- PRovoke) MUNICH & OSLO - Fast-growing European holding company Paritee, which last year bought leading UK-headquartered agency Brands2Life, has acquired LHLK Gruppe, in its first move into the German market.

LHLK Gruppe, which specialises in brand, corporate, public acceptance and infrastructure communications, comprises the agencies LHLK and PRpetuum (PRP). The two entities had combined Net Sales in 2023 of more than €11 million, with around 100 employees across operations in Berlin, Frankfurt and Munich.

The firm's client portfolio includes Haribo, Munich Re, federal Ministry for Economic Affairs and Climate Protection, NTT Data, Deutsche Bahn and semiconductor company Ams Osram.

Paritee has acquired a significant majority stake in the group and the current shareholders will retain a“meaningful minority” position in the agency. LHLK founder and CEO Dirk Loesch and his management team remain in place.

CEO Jonas Palmqvist – who becomes chairman of LHLK Gruppe – told PRovoke Media:“Paritee's mission is to create a new model of collaboration between agencies and invest in world-class national champions. It's a prequisite to have an agency in Germany, with its strong trading routes between Scandinavia and the UK, and in LHLK we have an impressive agency with a fantastic management team, great brands and strong performance.”

On Partitee's future plans for the acquired agency, Palmqvist said:“Right now, it's business as usual – we will continue nurturing our great clients. But over time, Dick and I will continue to expand our sectors, services, offer and geography, and work with other agencies on the platform.”

Commenting on why so many emerging European-led groups were growing so fast in a challenging global market, he said:“I can't speak for the networks, but I can say we are characterised by a passion for communications and entrepreneurship and believe there is real value created by strong local entrepreneurs having an international exchange of ideas in the PR community.

“There is communications magic and financial magic in that approach. If you try to be everything and have a broad set-up, you will struggle in this market.”

Loesch told PRovoke Media:“We've been talking to Paritee for over two years and there has been common ground from the start. We made an acquisition ourselves in the German market, then we picked up talks again, we've been working on joint projects and it feels like we know each other pretty well.

“We have been approached by various agencies and networks, and Paritee were the only ones we started talking with – I like the idea of finding a third way between owner-led independents and a network, having experienced both. Paritee is bringing the best of both worlds together with a super-entrepreneurial drive. Most traditional US-driven networks kill entrepreneurship.”

Founded in 2021 by chairman Lars Erik Grønntun, former global president of Hill & Knowlton, Paritee's mission is to create a new type of EMEA agency network and model for collaboration across marketing, comms and corporate advisory, with a focus on agencies that work with transforming and high-value industry verticals, such as technology, energy, healthcare, mobility and financial services.

In 2022, the company
completed its first acquisition with Geelmuyden Kiese , one of Scandinavia's largest communications agencies with offices in Oslo, Copenhagen and Stockholm. In December 2023, Paritee
acquired UK-based agency Brands2Life , before buying DVA Creative Technology Studio in May this year.

Grønntun said:“I am pleased to see Paritee entering the German market, an important economy of scale with significant long-term growth potential.

“The acquisition of LHLK Gruppe represents an important step in preparing Paritee for further expansion within Germany and select markets across Continental Europe. Paritee continues to maintain discipline in expanding the platform, both by geographical markets and verticals. As we continue to grow, organically and through targeted acquisitions, we will focus our investments where it really makes a difference; for clients, talent and shareholders.”

Paritee's agencies now generate annual net sales of more than €60 million, with more than 400 employees across 10 locations. In addition to becoming part of the Paritee platform, LHLK will also join the Brands2Life Global Network, which is made up of 20 partner agencies across 30 countries.

MENAFN07112024000219011063ID1108860586