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HDS Marketing Acquires Team Shop Premiums
Vol. 789
Feb. 10, 2011

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Strengthening its influence on the West Coast, Pittsburgh-based HDS Marketing, Inc. (asi/216807) has acquired Phoenix-based distributor Team Shop Premiums (formerly asi/342478). Financial terms of the deal, which closed yesterday, were not released. “We’re very excited about this acquisition,” said Howard Schwartz, founder and CEO of HDS, in an interview with Counselor. “We gain additional offices and expertise we didn’t have. HDS is a fast-growing company and a force to be reckoned with.” 

Through the deal, HDS has increased its sales team by seven people, who all will remain based in offices in Phoenix, Kansas City and Utah. “They approached us and we put the deal together quickly,” Schwartz says. “It took less than 60 days. We believe this deal will help us from day one.” Adds Bob Nanberg, partner of Team Shop Premiums: “The combination of efforts will yield a new and fully empowered company, being able to offer all important elements of our industry to our clients. HDS is poised for great things in 2011.”  

A full-service agency that provides promotional products, warehousing, fulfillment and e-commerce programs, HDS generates annual revenues of $8 million, while Team Shop Premiums generates annual revenues of roughly $3 million, according to Schwartz. “Together, we’d be in the range of $11 million to $13 million without any growth at all,” he says. “We’re expecting 15% growth this year. We’re also actively seeking other deals that make sense for us.”

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