Tokyo-based Vector Inc. will acquire Honolulu-based PacRim Marketing Group Inc. and its sister companies PRTech LLC and PacRim Marketing Tokyo KK.
The acquisition, which is slated to close by year’s end for an undisclosed amount, folds a small locally owned business into one of Asia’s largest independent media and communications corporations. It creates a succession plan for PacRim, which was founded 26 years ago by Dave Erdman; and PRTech, which he created in 2004. It also gives the company access to expanded resources and its first outside capital.
“I’m not retiring, I’m restarting,” said Erdman, who remains president and CEO of PacRim Marketing Group and PRTech as part of a long-term agreement.
The locally headquartered companies are anticipated to retain their branding and will continue managing client accounts from their Honolulu office in Suite 888 of the Ala Moana Pacific Center. However, PacRim’s current Asia-Pacific headquarters in Tokyo eventually will integrate with Vector’s – having locations not just in Japan, but throughout Asia.
Erdman does not expect the acquisition to affect the 42 employees who work in Hawaii. He said the Japan-based team will double to 10.
“This will help realize my vision of being a larger company in Hawaii,” he said. “It also supports our customers as they work to gain a greater share and more spending from evolving and emerging travelers. Our clients will benefit from the creativity and innovation resulting from synergies and shared media platforms, expertise, networks and contacts throughout Asia.”
Following the acquisition, Erdman said local clients will keep their contacts.
Although Erdman’s companies have experienced several waves of growth since PacRim’s initial 1990 launch, the acquisition is by far their most strategic development.
“When we started, it was just me and an intern from Hawaii Pacific University,” he said. “We were focused on the Japanese and Asian markets. We had SARS, hurricanes and earthquakes, but our team was resilient. We were able to continue to find ways to sustain and grow our business.”
The agreement with Vector creates new growth opportunities for all involved, Erdman said.
“Acquiring one of the top marketing firms in Hawaii is a natural step to increasing the quality and scale of our public relations business, as it increases our network and marketing expertise at the gateway to Asia and U.S. markets, said Vector President and Global Chairman Keiji Nishie in a news release.
Nishie said he was impressed by PacRim’s innovation and its multicultural and multilingual teams. Vector also took note of the company’s status as a PR firm that has embraced digital solutions and of Erdman’s connections, which include serving as chairman of the Honolulu Japanese Chamber of Commerce.
“Our marketing communications services and solutions will complement each other,” he said.
The acquisition makes Vector one of the largest independent media communications firms in the Asia-Pacific, with revenue over $90 million, and more than 500 employees. It also adds a U.S. office to Vector’s lineup, which includes offices in Shanghai, Beijing, Taiwan, Hong Kong, Singapore, Thailand, Malaysia and Vietnam.
Locally, it carves out a succession plan for PacRim and PRTech.
“I have a 22-year-old stepdaughter, Mari Erdman,” Dave Erdman said. “We looked at the succession plan and she’s smart enough and creative enough and savvy enough, but she’s passionate about game design. This acquisition makes sense to solidify our future and build a sustainable company that offers lots of opportunities for our teams. But if our daughter ever wanted to come back, we’d welcome that.”
