Great American to Sell Ad Agency to East Coast Firm

Franklin & Associates Advertising & Public Relations, San Diego’s largest ad agency and a subsidiary of troubled Great American Bank, has agreed to be acquired by East Coast agency Earle Palmer Brown for an undisclosed price.

Franklin’s accounts include Great American, the San Diego Zoo and the San Diego Padres. Great American has been trying to sell its Franklin & Associates unit for the past six months at the urging of federal regulators, who are forcing savings and loans back to traditional lines of business. Great American last week announced plans to sell all of its California branches to Wells Fargo Bank to raise capital.

Great American advertising accounted for about 20% of Franklin & Associates’ $35 million in gross billings last year, President Bob Cerasoli said. Other major clients include Union-Tribune Publishing, San Diego Gas & Electric Co. and Ektelon Racquetball Products.

With gross billings of $360 million last year, Earle Palmer Brown, based in Bethesda, Md., is the nation’s 24th-largest ad agency. The firm’s client list includes USAir, BellSouth, Omni Hotels and Donnelley Directory. Earle Palmer Brown runs a public relations operation that ranks 21st in the nation in gross revenues.

Earle Palmer Brown was founded in 1952 and, as recently as 1980, was a small agency with only $10 million to $15 million in gross billings, chief executive Jeb Brown said Thursday. Since then, the agency has grown rapidly, partly through a series of acquisitions of local firms. Employees now total 500.

The acquisition of Franklin & Associates, which has 60 employees, is expected to close next month. The purchase will give Earle Palmer Brown its first office on the West Coast, although more openings are planned. It has offices in New York; Philadelphia; Chicago; Washington; Richmond, Va.; Atlanta, and Tampa and Ft. Lauderdale, Fla.

Franklin eventually will be renamed Earle Palmer Brown/West.