Superior Uniform Group, Inc. (asi/90266) announced it reached $64.7 million in net sales for the second quarter, an increase of 19.5% compared to its $54.1 million in net sales in last year’s Q2. BAMKO, Inc. (asi/131431), the Los Angeles-based distributor that Superior acquired for $15.8 million in March, generated net sales of $9.8 million in the quarter, representing an increase of more than 88% versus the same period in 2015.
“The BAMKO team has now been with us for four months, and they’ve come out of the gate very strong,” Michael Benstock, CEO of Superior Uniform Group, said in an earnings call. “Sales are on track to continue growing at a double-digit rate, and we expect the acquisition to be slightly accretive for the year excluding acquisition expenses.”
Benstock noted that the BAMKO acquisition strengthens the company’s branded merchandise offerings and, combined with Superior’s legacy promotional product business, offers “substantial synergies with our uniform business,” he said. “It’s an outstanding organization that has invested heavily in talented people to prepare to move their business to new heights.”
Starting in 2017, Benstock said BAMKO will actively pursue acquisitions, targeting companies with $5 million to $15 million in sales, solid geographical penetration, a loyal customer base and product lines or services that Superior can leverage. “We believe BAMKO can generate average organic growth of more than 15% per year,” Benstock said. “Overall, our long-term vision is building our team to scale revenues to much higher levels, and BAMKO’s infrastructure is already in place to be able to serve us a much higher base of net sales.”
Last year, BAMKO generated approximately $31.5 million in revenue. The distributor has subsidiaries in Hong Kong, China, Brazil and England as well as an affiliate in India.
Superior, which operates through two segments (uniforms and related products and also remote staffing solutions), posted a net sales increase of 22.1% over the first six months of the year. The company was able to pay down outstanding debt by $4.7 million in the quarter. Said Benstock: “This financial strength positions us well to continue to invest in our businesses and to take advantage of opportunities as they arise.”