Halo/Lee Wayne Acquires Tulsa Distributor
March 12, 2009
Halo/Lee Wayne (asi/356000) announced yesterday that it acquired Tulsa, OK, distributor Advertising Novelties Company (asi/111600) in an all-cash deal. “We doubt that there are very many other acquirers in a position to purchase promotional product distributors in an all cash transaction,” Halo CEO Marc Simon told Counselor. “As a result of our capital structure and operating model, we anticipate exploring additional acquisition opportunities.”
Further financial terms of the deal were not revealed. Advertising Novelties’ staff of 17 sales members will join Halo/Lee Wayne at its Sterling, IL, offices, selling under the Lee Wayne brand. Halo Senior Vice President of Marketing Terry McGuire confirmed that Advertising Novelties President Randy Elliott will be joining the company as an account executive, and that other key members will retain their positions in Tulsa and other sales offices. “AdNov is a great fit for us because they have a small, concentrated sales force with blue-chip accounts,” says McGuire. “And their operating model is very similar to ours.”
Halo/Lee Wayne expects the acquisition to improve their outlook for 2009, citing the difficulties of increasing revenue at this moment for many companies. Advertising Novelties had previously reported annual revenues of more than $5 million to the ASI CreditConnect service. “We anticipate this will be a very challenging year to grow organically,” McGuire says. “And we’re very well-positioned to make good-sense acquisitions like Advertising Novelties. This will be one of the ways we look for growth in 2009.”
Halo/Lee Wayne ranks as the 10th largest distributor on the Counselor Top 40 list, after reporting 2007 North American ad specialty revenues of $145 million.