Business
Stran & Company Announces Closing of GAP Promo Acquisition; Adds Over $7 Million in Annualized Revenue
Acquisition expected to be highly accretive; expands Stran’s reach within the beverage and consumer packaged goods industries Quincy, MA , Feb. 01, 2022
About this update from Stran & Company, Inc.
[{"type":"text","content":"Acquisition expected to be highly accretive; expands Stran’s reach within the beverage and consumer packaged goods industries\nQuincy, MA , Feb. 01, 2022 (GLOBE NEWSWIRE) -- Stran & Company, Inc. (\"Stran\" or the \"Company\") (NASDAQ: STRN) (NASDAQ: STRNW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced the completion of its previously announced acquisition of GAP Promotions, LLC (“GAP Promo”) in an asset purchase transaction. Andy Shape, President and CEO of Stran, commented, “We continue to generate strong organic growth, while focusing on accretive acquisitions that are highly synergistic with our existing operations. This latest acquisition of GAP Promo adds an impressive roster of top-tier beverage and consumer packaged goods clients. We also expect this acquisition will result in meaningful economies of scale. Looking ahead, we have a solid balance sheet, including approximately $42.4 million in gross proceeds from our recent IPO and private placement. This is a highly fragmented market, ripe for consolidation, and our goal is to position Stran at the forefront of the industry. We are pleased to welcome the high-quality Gap Promo team to the Stran family at this exciting time.\" Headquartered in Gloucester, Massachusetts, GAP Promo is a full-service promotions agency that designs, sources, and develops custom brand solutions for many of the world's leading beverage and consumer packaged goods companies. GAP Promo achieved sales of $7.4 million in 2020 and has been profitable since inception in 2006. GAP Promo’s expertise in point of sale, display, racks and more bolsters Stran’s business in the beverage and consumer packaged goods sectors. Stran’s product sourcing and development, technology, logistics and fulfillment expertise provides GAP Promo’s customers with a broader array of new services and capabilities. The combined knowledge and capabilities are expected to generate growth opportunities across both organizations’ existing clients, as well as help attract new clients. Gayle Piraino, founder and President of GAP Promo, will continue with the Company to lead the new GAP Promo business. Stran will also retain all of GAP Promo’s current employees. Additional details of the transaction will be included in the Company’s Form 8-K...