Top 40 supplier SnugZ USA (asi/88060) announced Wednesday that it has acquired SoulKix, an Orem, UT-based company that specializes in creating custom-printed canvas sneakers. SnugZ, headquartered in West Jordan, UT, began showcasing the shoes to the promotional products industry at the ASI Show Orlando (www.asishow.com) this week and PPAI Expo last week. First orders are tentatively slated to start shipping in March.
Acquiring SoulKix will help SnugZ build sales in the promo industry’s footwear niche, said CEO Brandon Mackay. “We have been interested in a line extension for some time,” Mackay told Counselor. “After watching Soulkix grow over the past year in the non-promo channel, we knew they would flourish in the promo marketplace.”
Available in kids through adult sizes, SoulKix has appeared in local news spotlights and generated consumer interest everywhere from corporations to college campuses. Terry and Mason McEwen founded the company in October 2015, but will not be joining SnugZ as part of the acquisition. “We are pleased to be acquired by SnugZ, which really has the capacity to grow the business to its full potential,” said Terry McEwen.
Mackay said the acquisition was made in a cash deal. Particulars of the transaction were not made public.
An ad specialty industry leader in the manufacturing of lanyards, health/beauty products and corporate gifts, SnugZ USA ranked 39th on Counselor’s 2016 list of the Top 40 largest suppliers by revenue, with reported 2015 revenue of $39 million. Mackay said year-over-year sales accelerated about 10% in 2016. “SnugZ USA enjoyed another record growth year,” he told Counselor. “We’re looking forward to double digit growth again in 2017.”