As first reported in a Breaking News Alert last week, Top 40 supplier Hub Pen Company (asi/61966) announced that after a long search it has chosen New York-based private equity company Tenex Capital Management as its new partner to support the company’s growth. Financial terms of the deal were not released, but a Hub Pen spokesperson told Counselor that the Fleming family would still maintain ownership of the company.
Hub said that its current operations will remain in place following the equity injection from Tenex Capital, and that its current management team – Joe Fleming, president; Mike Fleming, vice president of sales; and Bob McGaughey, vice president and general manager – will still be active shareholders in the business.
“Together with our new partner, we will be better positioned to provide our associated distributors the quality products and services that have made Hub a leader for more than half a century,” Hub said in its statement today. “The company wishes to thank all of its valued partners for all the consideration and support they have shown over the years and looks forward to a dynamic future with our expanded team.”
Pamela Baker, executive assistant and marketing copywriter, told Counselor that Tenex’s investment in Hub Pen should only result in improved experiences for distributors. “Our distributors can expect the same, or improved, quality of service and product as we implement best practices in inventory, production, front office and graphics,” Baker said. “We are basically expanding the family business to include a strong partner with tremendous expertise in manufacturing that will help us fuel our dynamic growth.”
Hub Pen ranked number 33 on the Counselor Top 40 last year, after reporting $46 million in North American promotional products sales for 2014. The company most recently reported to Counselor that it recorded $52.1 million in promotional products sales in 2015, an increase of 13% over 2014.