Blue Moon Advertising Acquires Ad Spec
March 4, 2010
Continuing its expansion plans, Blue Moon Advertising and Promotional Products (asi/141834) has acquired Advertising Specialty Company (asi/114100), creating the largest distributor in northern Nevada. Per the deal, the combined companies will operate as Blue Moon Promotions, headquartered in Reno. Financial terms of the agreement were not disclosed. "We had been talking about a deal for a while and finally closed at the end of February," said Klaus Grimm, owner of Blue Moon. "We've now doubled our staff and we're going to stay aggressive."
According to Grimm, Blue Moon's sales increased 12% last year to roughly $2.5 million. "We made some choices in cutting costs that allowed our profits to double and that gave us a war chest we could use for an acquisition," said Grimm. "We have plans to expand into Las Vegas and California. We eventually want to have five or six offices."
Founded 60 years ago, Ad Spec has recently generated annual revenues of more than $3 million. The company's president, Jake Heckman, has joined Blue Moon and will work closely with Grimm. "I want to focus more on the big picture, so I'd like to groom Jake to be our president." Grimm said.
Specializing in apparel and promotional items, Blue Moon will also continue to provide graphic design and e-commerce solutions as well as screen printing and embroidery. The company employs 10 salespeople, including Grimm. "Selling is my favorite thing to do," he says. "I'm tired of all the negative talk in the industry. I think there's business out there and money to be made for all of us. We all need to be proactive and not reactive."