Dutch promotional products supplier XD Connects has been acquired by Platinum Equity, the private equity firm that last month announced plans to take ownership of Solo, which merged with Midocean in 2022 to create one of the largest global suppliers.

Albert van der Veen, XD Connects

Financial terms of the deal weren’t disclosed. The potential transaction remains subject to customary closing conditions, including regulatory approvals.

“We are thrilled to be joining forces with Solo and Platinum Equity,” said Albert van der Veen, CEO of XD Connects, which was named the Counselor Sustainability Advocate of the Year in 2024. “Our industry is changing rapidly. This envisioned partnership brings together two highly complementary businesses with a shared commitment to innovation, sustainability and customer service.”

He added: “Our combined capabilities will allow us to better serve our customers, simplify their operations and unlock new growth opportunities for our customers across Europe, consequently securing the position of the company in this increasingly demanding market.”

Van der Veen told ASI Media that how the combined companies will look going forward – and whether XD Connects would retain its name – will be discussed and analyzed during the coming months.

Founded in 1986 and headquartered in Rijswijk, the Netherlands, XD Connects serves more than 5,000 distributors, primarily across Europe, offering a broad portfolio of high-end custom-branded merchandise. The company operates an in-house printing and fulfillment center, as well as a design studio and sourcing office. A few years ago, the company underwent a seismic shift in the way it approached environmental impact, taking steps to develop an independently verified lifecycle assessment (LCA) tool that calculates the cradle-to-grave carbon emissions generated by each of its products and then publishing that information on its website and in its catalogs.

The European promo market is highly fragmented, according to Platinum Equity, and the private equity firm said it sees a clear opportunity to lead its consolidation.

“Platinum Equity has a lot of experience helping companies build scaled, resilient B2B services and distribution platforms,” said Louis Samson, co-president of Platinum Equity. “XD Connects is a highly strategic addition to our investment in the European custom-branded merchandise space that helps create a differentiated platform in a fragmented market with significant opportunities for growth.”

Platinum Equity’s portfolio includes about 60 companies globally, including Momentec Brands, the parent company of Augusta Sportswear (asi/37461). In August, Platinum Equity announced plans to acquire Solo, which merged with Dutch hard goods supplier and decorator Midocean in 2022.

“The envisioned combination of XD Connects and Solo will reinforce the group’s position as a leading B2B service provider,” said Malik Vorderwuelbecke, managing director of Platinum Equity.

He added that Platinum Equity will manage activities across product development, procurement and curation of inventory, providing “efficient customization at scale” on behalf of more than 20,000 customers.

“The platform will become a true one-stop shop that will broaden choice, compress lead times, elevate print fidelity and enhance product quality for its customers,” Vorderwuelbecke said.

Latham & Watkins is serving as Platinum Equity’s legal adviser in the deal.

A number of promo firms have taken on private equity backing in the last few years. In fact, the two largest acquisitions of 2024 – Counselor Top 40 supplier S&S Activewear’s (asi/84358) acquisition of alphabroder and Counselor Top 40 distributor iPROMOTEu’s (asi/232119) acquisition of AIA Corporation – were both fueled by private equity funds.