Axis Promotions Buys NY Distributor
In a deal that merges two New York companies, Axis Promotions (asi/128263) has acquired Warjo Promotions Inc. (asi/355440). There are indications the deal was set in motion in response to new PhRMA regulations that restrict non-educational gifts. “Warjo did a lot of work on the PhRMA side and now they’re looking to transition their business,” says Larry Cohen, president of Axis. “They have been competitors in the past and our philosophies have been pretty similar, so this is a good fit for us.”
Terms of the deal were not disclosed, but Cohen says Warjo’s small full-time staff will join Axis. Joe Carey, vice president of Warjo, is excited about the opportunity to work at Axis. “We had been looking for the right fit for a while,” Carey says. “Axis is the perfect fit.”
Cohen says Axis produced 2008 revenues in excess of $28 million, while Warjo generated revenues of about $3 million. He admitted 2009 will be a difficult year to gauge, but expressed a desire to be aggressive. “Old clients and perspective clients are answering their phones and being receptive,” Cohen says. “Clients are looking for the best ideas and the companies that have cost-effective plans. We want to be creative. We also have great lines of credit and great banking relationships, so we’ll always think about more acquisitions.” Axis serves 19 companies in the Fortune 100 and was named to the Counselor list of Best Places to Work for 2008.