Branders.com Acquires Promopeddler.com
February 24, 2010
Counselor has confirmed that California-based Branders.com (asi/145021) has purchased Promopeddler.com (formerly asi/300367), the Oregon company whose sales had fallen more than 50% in early 2009. Terms of the deal were not disclosed, but according to sources, the purchase was completed in only 10 days after negotiations with another potential buyer broke down. Multiple executives at Promopeddler have joined Branders, working to improve the company's sales training and Internet search engine optimization.
As reported in Counselor Promogram last spring, Promopeddler's owners Monte Baumgartner and Lewis Amicone actively sought a buyer for their company after enduring a difficult sales stretch, beginning with the fourth quarter in 2008. "The first quarter in 2009 has been bad," Baumgartner told Counselor in an interview last year. "In this economy, suppliers have more demands."
Established a decade ago, Promopeddler.com became one of the fastest growing companies in the industry, at one point boasting a three-year growth rate of 865%. However, revenues at Promopeddler slipped to $9 million in 2008, falling well below estimates. Branders.com declines to report its annual revenues to Counselor, but the company claims that it grew 40% in 2009. Additionally, Branders is forecasting 45% growth in 2010.