Brandito (asi/325944), a private equity-backed promotional products distributor headquartered in Richmond, VA, has acquired Fairfield, OH-based distributorship Promo Spark (asi/349939). Financial terms of the deal were not released.

Michael Lovern, president and founder of Brandito, said PromoSpark is a fast-growing distributorship with a client-focused culture and values that align perfectly with those of Brandito, making the acquisition a great fit.

Michael Lovern, Brandito (asi/325944)

“This acquisition represents a significant milestone in our journey to expand our market presence and customer reach,” Lovern said.

Sarah Johnston, founder of PromoSpark, is joining Brandito as director of the company’s Midwest division. Brandito plans to maintain PromoSpark’s office and distribution center in Fairfield. The PromoSpark name will be transitioned out, and the office will become the Brandito Midwest Division. No further changes are planned.

“We are excited to join forces with Brandito and embark on this new chapter of growth,” Johnston said. “The Brandito team has built an incredibly unique platform in our industry, and I’m confident that Brandito-added resources and capabilities will allow us to create a more powerful brand experience for our clients.”

Johnston founded PromoSpark 22 years ago. In 2013, she co-founded Free Throws for Kids, a nonprofit that supports the patients and their families at Cincinnati Children’s Hospital and the Cincinnati Ronald McDonald House.

PromoSpark produces the event’s team T-shirts free of charge, donates goodie bags to families, and gives back through volunteering.

“The Brandito team has built an incredibly unique platform in our industry and I’m confident that Brandito-added resources and capabilities will allow us to create a more powerful brand experience for our clients.” Sarah Johnston, PromoSpark (asi/349939)

Lovern founded Brandito in 2009. The company previously appeared on Counselor’s Best Places to Work list and the Inc. 5000 rankings of the fastest-growing private companies in the United States. Do-gooding is a core part of Brandito, as evidenced by its support of the “Wonder Tower” project.

Chicago-based PE firm Monroe Street Partners (MSP) acquired a majority stake in Brandito in the summer of 2023. Executives stated that Monroe Street undertook the investment in partnership with Lovern, who made what was described as a “substantial reinvestment” in the distributorship.

PE investment in promo has increased in recent years – a trend many industry leaders expect will continue. Promo remains a fragmented industry, and PE pros have said that makes it ripe for a “buy-and-build” strategy. This involves a PE firm acquiring one successful promotional products company and then making additional acquisitions of quality companies in the market through that purchased firm.

Mergers and acquisitions in the promotional products industry decreased in the second half of 2023. Activity in January 2024 was more muted than in Januarys from recent years past. However, dealmaking has picked up considerably of late, and M&A experts in the industry believe the momentum will continue to build as the year progresses.

Notable recent deals include top Austin, TX-based Top 40 distributor Boundless (asi/143717) acquiring fellow Top 40 firm Touchstone (asi/345631).

Meanwhile, Myron (asi/278980), a Top 40 promotional products distributor, last week made its first acquisition under the leadership of longtime industry executive Jeff Lederer and business partner Christian Feuer, purchasing Schneider GmbH, a promo company headquartered in Hamburg, Germany.