Prime Acquires Two Direct-Sourcing Suppliers
Financial Terms Of Deals Not Revealed
As first reported this week in a Breaking News Alert, Top 40 supplier Prime Line (asi/79530) has acquired ROI Line by Source Abroad (asi/88242) and Get It Global (asi/56712) in two separate but simultaneous transactions. While financial terms of the deals were not revealed, Prime says the two transactions will immediately add between 10% and 15% to its annual revenues. Prime said that its impetus for both of the deals, which are both effective immediately, was to add more custom sourcing capabilities to its offerings.
“We’re thrilled about adding both of these companies,” Jeff Lederer, president of Prime, told Counselor in an exclusive interview. “We feel like custom sourcing is going to be a major trend in the market moving forward, and this gives us more ability to meet distributor needs. These new additions will allow us to service customers at a much higher level. It will give distributors direct access to factories in China through Prime.”
Following the deal, Los Angeles-based ROI Line by Source Abroad will continue to be based in California and company founder Caro Krissman will remain in a consulting capacity. The supplier will now be known as ROI by Prime, but Lederer said there will be no operational changes for the line. ROI’s Awareness Line of cause-related items will now become part of Prime’s product offerings. In addition to the custom offerings of ROI Line, Lederer said that the deal helps Prime expand its offerings to the west coast market. “The California location will help us to service distributors on the west coast even further,” Lederer said. “It makes our presence there even better, and we can provide delivery and pricing that we probably couldn’t previously offer.”
The product line of Ohio-based Get It Global, which focuses on complete customization of products and packaging, will be integrated into Prime Line’s operations immediately and will be known as Get It Global by Prime. As a result of the deal, Andrew Brodey, the owner of Get It Global, will join Prime as the company’s vice president of global sourcing.
Prime ranks as the 24th-largest supplier in the market, after reporting 2012 North American ad specialty revenues of $56.3 million. Lederer told Counselor that he expects the two new custom sourcing companies to represent up to 25% of Prime’s overall revenues within the next few years. “We’ve been working on these two deals for the last several months,” Lederer said. “We’re excited to grow our custom sourcing business at a faster pace, and we’re looking forward to starting the year off with these new capabilities.”