S&S Activewear (asi/84358), the third largest supplier in the promotional products industry, has signed a definitive agreement to acquire fellow Top 40 supplier TSC Apparel (asi/90518). Financial terms of the deal between the private companies were not released.

“We saw a great affinity between TSC and S&S,” said S&S CEO Jim Shannon. “We both built our business through a positive company culture, retail-brand focus, and the development of relationships with employees, vendors, and customers.”

Headquartered near Cincinnati OH, TSC Apparel is the 14^th largest supplier in the promo market based on 2020 North American promo products revenue of $110 million.

S&S executives said that joining forces with TSC will allow for a greater depth of inventory and an expanded product offering. S&S products already can reach 99% of the U.S. within two days and 44 states in just one day, executives said. Popular TSC brands like Tultex and M&O will be available through S&S, executives noted.

“We're excited to inherit such a well-established company," said Frank Myers, S&S's chief operating and financial officer. “For years, we have thought it made a lot of sense to acquire TSC, not only for both our companies, but for our industry as a whole. We are bringing together two organizations dedicated to creating a first-class customer experience.”

Beginning next year, the TSC brand will be retired, and the operations of the business will function under the S&S brand going forward. The majority of the TSC executive team will be transitioning out over the early part of 2022. Further details on that won’t be available until after the acquisition finalizes.

Merger and acquisition activity has been increasing in the promotional products market, and this deal is another sign of the trend. This is S&S’s fourth acquisition since 2010. The supplier, which reported 2020 North American promo revenue of $1.4 billion, is majority-owned by private equity firm Clayton, Dubilier & Rice (CD&R).

Founded in 1976, TSC has grown from a regional T-shirt supplier into a leading national distributor of blank apparel and accessories, serving more than 30,000 customers, executives said.

"We see (the deal with S&S) as an exciting next chapter for our company," said TSC CEO Dave Klotter. "Through a similar customer-centric approach, S&S will be able to build on our success. That will greatly benefit our industry."

Within the last decade, S&S Activewear has grown from a successful Midwestern supplier into a national apparel juggernaut with a presence in Canada, too. The firm’s footprint includes approximately four million square feet of warehouse space and more than 2,000 employees. CEO Shannon ranked 12^th on Counselor’s 2021 Power 50 list of promo’s most influential people.