AIA Acquires OfficeZilla

Top 40 distributor AIA Corporation (asi/109480) has acquired Kennesaw, GA-based OfficeZilla and increased year-over-year sales in 2017. Financial terms of the acquisition were kept private.

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OfficeZilla serves entrepreneurs who specialize in the distribution of office, breakroom and facilities maintenance products, as well as office furniture and technology. “The office supply and promotional product markets served by AIA and OfficeZilla are adjacent, serving like-minded customers in similar ways,” said Matt Gresge, CEO of AIA Corporation. “Because of the synergistic nature of both companies, this acquisition creates tremendous opportunity to grow the businesses of entrepreneurs at AIA and OfficeZilla by expanding their portfolios of competitively priced products.”

Indeed, Gresge told Counselor that one key reason why AIA Corporation was eager to acquire OfficeZilla is because the Georgia firm’s product offerings will give AIA sales pros the opportunity to sell a broader range of products to existing clients. A talented team and a first-rate technology platform made the prospect of bringing OfficeZilla under the AIA umbrella an even more attractive option, Gresge said. “From a technology standpoint, the tools and analytics they bring to the table are going to enhance the entire AIA platform,” he told Counselor.

Going forward, OfficeZilla will remain in its headquarters and operate as a business unit of AIA. Susan Mintmire, president of OfficeZilla, will stay on in an executive role. Gresge also told Counselor that OfficeZilla will continue to go to market under its own name. “We’re thrilled to join the AIA family and leverage the organization’s long history of strong operational and financial success to further grow our dealers’ businesses,” Mintmire said.

The OfficeZilla acquisition comes at a time of growth for AIA. Gresge told Counselor that AIA increased its year-over-year sales in 2017 to $175.4 million – a figure that includes North American promotional product revenue and OfficeZilla sales. OfficeZilla, which has 30 active franchisees, generated $6.1 million in sales in 2017, according to AIA. Founded in 2012, OfficeZilla has increased revenue 644% in the last three years, earning a spot on the Inc. 5000 list last year.

Headquartered in Neenah, WI, AIA’s operation includes more than 300 independent distributors nationwide. In 2017, AIA says that it increased the size of its owner community by nearly 10%. In its latest rankings, Counselor lists AIA as the 12th largest distributor in the industry, after the company reported 2016 North American promotional product revenue of $161.5 million.