Tar Heel law firm joining S.C. firm

Office of Sanford Holshouser at end

Sanford Holshouser, the law firm that bears the name of two North Carolina governors, is disappearing from the Triangle.

The firm, which was started by former Gov. Terry Sanford in 1965, will announce today that it has merged with South Carolina firm Nexsen Pruet.

The union gives Nexsen Pruet a permanent beachhead in the Triangle, where it will focus largely on health care, real estate and economic development issues. For the lawyers of Sanford Holshouser, it's an opportunity to take on more diverse work.

"We do a tremendous amount of work in North Carolina, and it's difficult to serve a state without being in the capital," said Leighton Lord III, chairman of the board of Nexsen Pruet. Establishing an office in Raleigh has "been part of our strategic plan for the last three years," but the firm wanted to do so by finding a stable of experienced lawyers.

It has partnered with Sanford Holshouser when clients needed North Carolina expertise, and after "enough times you finally say, 'Why don't we become part of the same firm,' " Lord said.

The marriage highlights a growing trend of consolidation in the legal profession. In the past year, other firms with prominent local offices have merged -- Helms Mullis, for example, joined McGuire Woods in March, and in June, Kennedy Covington merged with K&L Gates.

Such unions allow firms to bolster their client lists and add services to win new customers or get more business from existing ones. Mergers can help cut down on marketing and business development expenses as well.

Sanford Holshouser has talked about merging with several other law firms through the years, including past discussions with Nexsen Pruet, said Ernie Pearson, the managing partner. There never seemed to be a good fit.

"Quite frankly, I wrestled with this," Pearson said. But "I've sort of hit a ceiling on the complexity of work I can do and on the ability to attract large corporate clients. ... [This merger] gives us an ability to have unprecedented capability in the Carolinas."

Nexsen Pruet has 180 lawyers in offices throughout South Carolina and North Carolina, including in Greensboro and Charlotte. Its practice covers an array of industries, including manufacturing, finance and construction.

The merger with Sanford Holshouser largely gives it more expertise in economic development, especially in North Carolina. Southern Business & Development magazine recently named both firms among the best in the Southeast for economic development matters.

Nexsen Pruet's new office will have seven lawyers. And for now, it will technically be in Cary, where Sanford Holshouser had its offices. Lord said the firm prefers a Raleigh address and will look for space in the capital city.

The Sanford Holshouser name will not disappear completely. Former Gov. James E. Holshouser Jr., who joined the firm in 1997, will still practice under the Sanford Holshouser name in Pinehurst. He will be of counsel with Nexsen Pruet.

And the Sanford Holshouser Business Development Group of Cary, which helps governments and companies with site selection and other economic development matters, will continue to exist as an independent entity.