Florida-based Superior Uniform Group has announced that its division, BAMKO (asi/131431), has acquired Top 40 distributor Tangerine Promotions (asi/341609). The deal, made public today, will close on December 1. According to a press release, the purchase price “is subject to adjustment and consists of approximately $7.2 million in cash, the issuance of approximately $2 million of Superior Uniform Group’s common stock that will vest over a four-year period, the potential future payment of $5.5 million in additional contingent consideration through 2021, and the assumption of certain liabilities.”
“The acquisition of Tangerine by BAMKO represents an incredible leap forward in the evolution of our company,” said Philip Koosed, president of BAMKO. “Steve Friedman and his team at Tangerine have built one of the elite companies in our industry. Their extraordinary roster of clients and exceptional capabilities in account management, POP displays, POS merchandise, and custom products is unrivaled in our industry.”
Per the terms of the agreement, Tangerine will operate as a division of BAMKO going forward, servicing customers from its current locations in Chicago, Los Angeles and Orange County, CA. Tangerine principals Steve Friedman and Adam Rosenbaum will remain with the business and will continue to lead the Tangerine division. Additionally, Rosenbaum will take on a management role with BAMKO.
“If one thing has become clear during this process, it’s that something very special is going on at BAMKO,” said Friedman. “They are building something that is decidedly unique in our industry, and we want to help build it. As we went through this process, we took inventory of our respective strengths and weaknesses. We quickly came to realize that we had an incredible opportunity to combine those strengths and become a disruptive force in our industry.”
According to the acquisition statement, Tangerine’s 2017 revenues for the year ending December 31 are projected to be approximately $36 million. Tangerine reported to Counselor that its 2016 North American promo products sales were $44.1 million, a year-over-year decline of 8.1% versus 2015. Not including the Tangerine deal, BAMKO’s annual promotional product sales exceed $30 million.
BAMKO has offices in the U.S., England, China, India, and Brazil. The Tangerine purchase is the second significant deal BAMKO has struck in recent months. In August, BAMKO acquired Los Angeles-based Public Identity Inc.
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