Promotional products-related M&A is proceeding across the pond.

On Tuesday, Nov. 26, Belgium-headquartered The Cotton Group sa/nv announced that it had acquired 100% of the shares of Falk&Ross Group Europe GmbH, one of Europe’s largest promo apparel suppliers. Financial terms of the deal were not announced.

The acquisition “marks a significant step in our shared journey toward growth, innovation and excellence in the textile and wholesale industries,” Murielle Degeest, managing director of The Cotton Group, said in a letter to customers.

Degeest said that Falk&Ross will maintain its existing business model, continuing as a multi-brand wholesaler. The firms will operate as separate businesses.

B&C, a company within The Cotton Group that sells apparel into the promo space and whose products are carried by Falk&Ross, will continue to operate independently through the parent firm’s established network of wholesalers, Degeest stated.

“Falk&Ross will continue to be one of our trusted wholesalers, operating under equal terms as all our other customers,” according to Degeest’s letter sent to customers.

Degeest said the acquisition will be a win for clients, as it will allow The Cotton Group and Falk&Ross to leverage each other’s expertise to bring greater value.

Nearly $14.1 billion
Annual promo distributor sales across the United Kingdom, European Union and Iceland, Norway and Switzerland in 2023(ASI Research)

“With decades of collective experience, this partnership consolidates expertise in both manufacturing and wholesale distribution, creating a seamless connection between production and market,” Degeest said.

With the addition of Falk&Ross, The Cotton Group consists of seven professional wear companies. The other companies span promotional wear (B&C), heavy workwear (Wenaas) and healthcare and service workwear (Clinic & Job Dress, Hejco, Martinson and Sverre W. Monsen). Each company has its own headquarters and management team, according to The Cotton Group.

The roots of Falk&Ross go back nearly 50 years to 1976.

According to the company website, the firm has offices across Europe and logistics facilities in Germany, Spain and Poland. Falk&Ross carries a broad selection of apparel brands, including ones North American promo pros would recognize like Counselor Top 40 supplier Gildan (asi/56842) and Fruit of the Loom (asi/84257).

In August, ASI Research released its second annual study of the European promotional products market, a large-scale analysis centered on determining that total distributor sales across the United Kingdom, 27 European Union countries and the nations of Norway, Switzerland and Iceland reached nearly $14.1 billion in 2023.

While not occurring at the rate happening in North America, where 2024 has proven to be a monumental year for M&A, notable mergers and acquisitions have certainly been occurring of late in the European industry too, ASI’s study of Europe showed. Some European promo leaders expect a gradual rise in such activity to continue in the years ahead.

“With intense competition and market saturation, I would expect to see a continued approach to M&A as businesses look to increase market share,” Pieter Boonekamp, general manager of PF Concept, Europe’s largest merch supplier, told ASI Media this summer.