S&S Activewear (PPAI 256121, Platinum) – the No. 5 supplier in the PPAI 100 – has announced the acquisition of alphabroder (PPAI 156993, Platinum) – the No. 2 supplier in the PPAI 100.

• Based on alphabroder’s 2023 revenue, this acquisition could put S&S Activewear’s revenue this year at more than $4 billion, potentially unseating SanMar as the No. 1 supplier in the promotional products industry.

S&S Activewear and alphabroder have satisfied the regulatory review needed to complete the transaction. Upon completion of the transaction, which is expected to occur later this year, both companies will continue to go to market under their respective brands and existing distribution channels.

S&S Activewear CEO Frank Myers and alphabroder CEO Dan Pantano will lead a disciplined, multi-year integration process designed to maintain the sales momentum for each business and position the combined company for long-term growth.

“We’re pleased to reach an agreement that unites two great companies and positions the S&S Activewear and alphabroder family of employees, customers and vendors for long-term growth,” Myers says.

“With the addition of alphabroder’s dedicated and experienced employee base, strong portfolio of brands and distribution capabilities, we’ll not only expand our product offering, but will also accelerate our investment in the customer experience, including our marketing, technology and supply-chain capabilities. Building on S&S Activewear’s 35-year track record of growth, we look forward to welcoming alphabroder to the organization while continuing to strengthen our win-win relationships with our industry partners.”

Industry Reaction

The merger, which joins two of only three companies in the industry with annual sales in excess of $2 billion, is arguably the most substantial example of the industry’s increasing consolidation.

“Since no single company or group of companies dominates market share, it should come as no surprise that our industry is ripe for continued consolidation,” says Dawn Olds, MAS, Interim CEO and President of PPAI.

“Having been part of many acquisitions myself, I know that both sides go into a deal expecting to see 1+1 equal more than 2. It will be exciting to see these two great organizations achieve their joint vision and come together to do things they might not have done alone.”

In response to the merger, which puts the combined company on pace to potentially rival SanMar in the apparel market, SanMar CEO Jeremy Lott told PPAI Media: “We have great competitors today as we have had for over 50 years. We will continue to be focused on our customers and how we can best service them. That’s what has made us successful in the past and will continue to be our focus in the future.”

Ultimately, the merger is an exciting development, according to Lori Bauer, CEO of iPROMOTEu – the No. 11 distributor in the PPAI 100 – and a member of the PPAI Board of Directors.

“Both companies are well regarded as iPROMOTEu preferred vendors,” Bauer says, “and this merger promises to enhance the customer experience significantly. With their plans to expand product offerings, invest in technology and upgrade resources and capabilities, we believe this acquisition will drive industry growth and provide enhanced services for promo distributors.”

What To Expect

As part of the transaction, S&S Activewear intends to make significant investments in technology, the integration and expansion of its sales force, its supply chain and distribution capabilities, and the employee experience.

“We’re thrilled to have found a partner in S&S Activewear that shares our customer-centric approach and commitment to investing in the brands, infrastructure and teams needed to build and strengthen successful long-term relationships,” Pantano says. “alphabroder has created one of the industry’s leading brand portfolios, and together with S&S Activewear, will benefit from an even stronger and deeper supply-chain network backed by integrated marketing and order fulfillment capabilities.”