In a groundbreaking move that is set to reshape the North American promotional products industry, S&S Activewear has officially completed its acquisition of Alphabroder, creating a powerhouse combination in the branded merchandise space. This marks the single largest acquisition in the history of the industry, and it’s already creating waves among garment decorators, apparel suppliers, and hard goods providers alike.
The Blockbuster Deal
Announced in August and finalized this month, the acquisition brings together two of the top promotional suppliers in North America. S&S Activewear, which generated a staggering $2.106 billion in revenue last year, has now combined forces with Alphabroder, which brought in over $2 billion in 2023. Together, they rank as the second and third largest suppliers in the industry, respectively. The merger promises to be a game-changer for the apparel and promotional products sectors, setting the stage for even more industry dominance.
While the financial details of the acquisition remain undisclosed, the impact is clear. “Today marks the start of an exciting new chapter for our company,” said Frank Myers, CEO of S&S Activewear. “We’re building on the strengths of both S&S and Alphabroder to enhance the customer experience and invest in growing our sales force and technology capabilities.”
What’s Next For S&S Activewear And Alphabroder?
For now, both companies will continue to operate under their respective brands, leveraging their existing distribution channels. So, if you’re a loyal Alphabroder customer, you can still access their popular product lines without any disruptions—at least for now. However, changes are coming to the decoration side of the business. S&S plans to phase out apparel decoration, which has traditionally been a key offering of Alphabroder, by March 2025.
But don’t fret! Alphabroder’s hard goods decoration will continue as usual, and S&S is even launching a standalone hard goods decoration division, complete with its own management and support teams.
Dan Pantano, CEO of Alphabroder, will assist with the integration process, ensuring a smooth transition. “We are focused on building on our business momentum while continuing to exceed the expectations of our customers,” Pantano noted.
The Bigger Picture
This acquisition isn’t just about joining forces—it’s about creating something bigger, better, and more innovative. Over the past decade, S&S Activewear has been on an impressive growth trajectory, evolving from a regional supplier to a national heavyweight. Strategic acquisitions like TSC Apparel and the expansion of facilities across North America have paved the way for S&S to potentially become the single largest supplier in the promotional products industry.
The timing couldn’t be more perfect. With interest rates expected to dip, industry leaders predict that mergers and acquisitions in the promo space could see a resurgence, fueling further growth and competition. S&S’s acquisition of Alphabroder may just be the tip of the iceberg in what could be a banner year for M&A activity in 2024.
A New Era For The Promotional Products Industry
As S&S Activewear continues its ascent to the top, it’s also investing heavily in customer experience. From advanced mobile robots in distribution centers to expanding its product offerings, S&S is pulling out all the stops to deliver a seamless, tech-driven service to its clients. “Our top priority is ensuring our employees, customers, and vendors continue to succeed alongside S&S,” Myers said. With Alphabroder’s resources added to the mix, that goal seems more achievable than ever.
The acquisition has also attracted the attention of some of the biggest players in the financial world. UBS Investment Bank, Barclays, Deutsche Bank, and a slew of others provided financing and served as financial advisors to S&S’s private equity backer, Clayton, Dubilier & Rice (CD&R). The heavyweight financial support underscores the significance of this deal—not just for S&S and Alphabroder, but for the entire promotional products industry.
S&S Activewear Completes Alphabroder Acquisition
The acquisition of Alphabroder by S&S Activewear marks a significant turning point in the promotional products industry. This merger brings together two industry giants, combining their strengths to create unparalleled opportunities for growth and innovation. As S&S Activewear continues to integrate Alphabroder’s offerings, customers can expect enhanced services, new product divisions, and cutting-edge technology to improve the overall experience. The industry is watching closely as this powerful union sets the stage for future advancements in branded merchandise, ensuring both companies remain leaders in the market.