When Scarborough Specialties rebranded to Brandability (asi/319940) at the end of 2023, company leaders made the change, in part, to signal the distributorship’s intention of expanding operations to a national scale.

Now, the Lubbock, TX-headquartered company is advancing that ambition further with the just-announced acquisition of Business Innovations (asi/152930), a distributor based outside of Atlanta.

Matthew Lamb of Brandability (asi/319940) and Alf Rhea of Business Innovations (asi/152930).

Financial terms of the deal between the privately owned companies weren’t released. However, speaking to ASI Media, Brandability CEO Matthew Lamb shared that the firm is now anticipating upwards of $35 million in 2024 revenue.

Still, this acquisition was about much more than just adding revenue, Lamb said. It was about bringing together two strong distributors to propel greater collective success, including the building of a geographic footprint that now extends the Brandability presence from the East to West coasts, and in between, he added.

“Business Innovations is an innovative and creative company I have worked with and known well for over a decade,” Lamb shared. “Cultural alignment is what connected us, and we’re excited to add their expertise to our organization. It’s really all about the people. Together, we’re committed to building a company that serves its team, clients and mission.”

To that point: All team members from Business Innovations are coming on board, executives said. Brandability will keep the Business Innovations Georgia facility and expand the warehouse and fulfillment footprint.

Speaking of M&A: Jamie Watson, one of the foremost experts on mergers and acquisitions in the promo industry, offers in-depth insight on the process of selling or buying a promotional products business in this ASI Education webinar with ASI Media’s Christopher Ruvo.

The acquisition came after Alf Rhea, president/co-owner of Business Innovations, began looking for exit options as retirement neared. Brandability was the right partner to move the firm into the future, he said.

“I was seeking a company that aligns with our values and would carry forward our mission and development of our people,” Rhea said. “Finding an organization with additional services for our customer base was important for our future success. Brandability provides us the operational and organizational elements we were seeking, and our teams clearly align on values.”

Mergers & acquisitions in the #promoproducts market can have ripple effects across the industry. While M&A decreased in the second half of 2023, indications are it stands to pick up again.

Is M&A in Promo Poised To Rebound in 2024? https://t.co/3QW8R6Z6Xk @asicentral

— Chris Ruvo (@ChrisR_ASI) February 7, 2024

Founded as Scarborough Specialties in 1992, Brandability started out focusing on building business in Lubbock, but gradually expanded across Texas. It now has offices across the Lone Star State.

The distributor’s national expansion began last year when it established a presence in Missouri and Oklahoma. Brandability works with thousands of clients in industries including education, healthcare, transportation, food/beverage, construction and community-based organizations. Giving back is part of the company ethos and actions.

Lamb, a former Facilisgroup executive, became CEO of Brandability (then Scarborough) in winter 2023. The company noted at the time that Lamb’s “proven leadership and experience will take us into the next phase of growth and innovation.”

There was a lull in mergers and acquisitions in the promotional products industry in the latter half of 2023, but activity has picked up of late.