In a groundbreaking move, S&S Activewear acquires alphabroder, marking a significant shift in the branded merchandise industry. This strategic merger, anticipated to finalize later in 2024, combines the strengths of two industry giants to create a powerhouse with a combined revenue of over $4.1 billion in 2023.
Key Details Of The Acquisition
The financial terms of the deal remain undisclosed, but the impact is undeniable. S&S Activewear, the second-largest supplier in the promo industry with an estimated revenue of $2.1 billion in 2023, joins forces with alphabroder, the third-largest supplier, which reported just over $2 billion in revenue.
Maintaining Brand Independence
Both S&S Activewear and alphabroder will continue to operate under their respective brands and existing distribution channels, ensuring a seamless transition for customers and partners. The leadership of this new entity will be helmed by Frank Myers, CEO of S&S Activewear, and Dan Pantano, CEO of alphabroder. They will guide a multi-year integration process focused on long-term growth and innovation.
Strategic Investments for Future Growth
Post-acquisition, S&S Activewear plans significant investments in technology, sales force integration, supply chain capabilities, and employee experience. This strategic focus aims to enhance their product offerings and elevate customer experiences.
“The acquisition of alphabroder is a transformative step for S&S Activewear, allowing us to accelerate our investments in technology and supply chain capabilities,” said Frank Myers.
Market Position and Industry Impact
This merger is set to potentially surpass SanMar, which was previously the largest supplier with an estimated revenue of $3.6 billion in 2023. By combining their resources, S&S Activewear and alphabroder aim to provide unparalleled value to their customers.
“Joining forces with S&S Activewear enables us to leverage our combined strengths to deliver unmatched value to our customers,” noted Dan Pantano.
Ownership and Equity Stakeholders
The merger involves prominent private equity firms. S&S Activewear is majority-owned by Clayton, Dubilier & Rice, which acquired the company in 2021. Alphabroder was previously owned by Littlejohn & Co., which acquired the supplier in 2012. The expertise and resources from these private equity stakeholders will drive future growth and innovation for the combined entity.
Benefits to the Promotional Products Industry
The union of S&S Activewear and alphabroder promises to bring significant benefits to the promotional products industry. The combined company will leverage alphabroder’s dedicated employee base, robust brand portfolio, and extensive distribution network alongside S&S Activewear’s innovative approach and market reach. This collaboration is set to enhance customer service, marketing, technology, and supply chain capabilities, delivering substantial benefits to industry partners and customers.
The Takeaway: S&S Activewear Acquires Alphabroder
The acquisition of alphabroder by S&S Activewear is a monumental event in the branded merchandise industry. This strategic merger combines the strengths of two leading suppliers, creating a powerhouse set to deliver unmatched value, drive significant growth, and usher in a new era of innovation. Customers and industry partners can look forward to enhanced capabilities and expanded offerings, positioning the combined entity as a true market leader.
Sources: PPAI, ASI, The Middle Market
FAQ: S&S Activewear Acquires Alphabroder
What is the impact on the branded merchandise industry?
S&S Activewear, the second-largest supplier in the promotional products industry, is acquiring alphabroder, the third-largest supplier. This landmark deal creates an industry giant with a combined revenue exceeding $4.1 billion, potentially surpassing SanMar as the largest supplier in the market.
When will the S&S Activewear and Alphabroder acquisition be finalized?
The S&S Activewear’s acquisition of Alphabroder is expected to be completed in the fourth quarter of 2024.
Will S&S Activewear and alphabroder continue to operate as separate brands?
Yes, both companies will maintain their respective brands and existing distribution channels to ensure a seamless transition for customers and partners.
Who will lead the newly merged company?
Frank Myers, CEO of S&S Activewear, and Dan Pantano, CEO of alphabroder, will jointly lead the new entity. They will oversee a multi-year integration process focused on long-term growth and innovation.
What are the key strategic investments planned following the acquisition?
S&S Activewear plans to make significant investments in technology, sales force integration, supply chain capabilities, and employee experience. These investments aim to enhance product offerings and improve customer experiences.
Who are the private equity firms involved in the S&S Activewear Alphabroder merger?
S&S Activewear is majority-owned by Clayton, Dubilier & Rice, while alphabroder was previously owned by Littlejohn & Co. Both firms bring significant expertise and resources to the combined entity.
What are the anticipated benefits of the merger for the promotional products industry?
The merger is expected to deliver several benefits, including:
- Enhanced customer service, marketing, and technology capabilities.
- Improved supply chain efficiency and product availability.
- Greater innovation and a wider range of product offerings.
- Increased market reach and a stronger competitive position.
What is the overall significance of this acquisition?
The acquisition of alphabroder by S&S Activewear is a transformative event in the promotional products industry. The combined company is poised to become a market leader, driving growth, innovation, and delivering unmatched value to customers and partners.
