Counselor Top 40 distributor iPROMOTEu (asi/232119) has acquired fellow Counselor Top 40 distributor AIA Corporation (asi/109480).

Financial terms of the deal were not released, but executives said the companies had $365 million in combined 2023 revenue.

“AIA's business model aligns with iPROMOTEu’s core mission of empowering distributor independence while offering a comprehensive suite of essential resources and top-tier support for their success,” said Lori Bauer, CEO of iPROMOTEu and a previous Counselor Woman of Distinction. “This strategic acquisition will enhance the market presence of both organizations and brings many competitive advantages.”

Lori Bauer, iPROMOTEu (asi/232119)

Moving forward, AIA will operate as a division of iPROMOTEu. AIA CEO Nancy Schmidt, a member of Counselor’s Power 50 list of promo’s most influential people, will stay on board as an advisor for a period of time.

“As I reflect on AIA's transformation over the past several years, I am incredibly proud of how our commitment to our purpose and vision has guided us to this pivotal moment,” said Schmidt. “This acquisition marks the next chapter in our journey, where the value we have created for the modern distributor will be fueled with even more new opportunities, forming a truly powerful force in our industry.”

Based on reported 2023 North American promotional product revenue of $211 million, iPROMOTEu ranked 15^th on Counselor’s most recent list of the largest distributors in the industry. AIA’s revenue was $154.6 million and the firm ranked 18^th.

Executives noted iPROMOTEu and AIA operate under similar business models, providing order financing, order processing support, sales and marketing tools, technology solutions and other resources to promo distributors. Staff, affiliates and owners that are connected with iPROMOTEu and AIA were informed of the sale earlier today.

“The acquisition marks a significant milestone in iPROMOTEu’s ongoing mission to provide unparalleled economic and lifestyle opportunities for promotional products distributors and salespeople," the company said. "It also lays the groundwork for enhancing the support provided to AIA owners and iPROMOTEu affiliates while increasing their visibility across the industry."

“As I reflect on AIA's transformation over the past several years, I am incredibly proud of how our commitment to our purpose and vision has guided us to this pivotal moment.” Nancy Schmidt, AIA Corporation (asi/109480)

The deal also is another instance in which one Counselor Top 40 firm has acquired another. In August, Counselor Top 40 supplier S&S Activewear (asi/84358), a multi-billion dollar company, acquired another Counselor Top 40 supplier that does about $2 billion in revenue – alphabroder (asi/34063).

M&A dipped in the promotional products market in the latter half of 2023 as rates soared but has been on the upswing again in 2024, as evidenced by such major recent deals. Both S&S and iPROMOTEu have backing from private equity firms. Some industry leaders maintain the financial muscle of PE companies active in promo will continue to drive mergers and acquisitions, and potentially greater industry consolidation. The Fed’s interest rate cut could, according to some industry executives, propel M&A, too.

Post acquisition, iPROMOTEu and AIA will continue to support their respective affiliates and owners, with Bauer overseeing the combined senior leadership team. Now in business for 25 years, iPROMOTEu named Bauer to the CEO role in February 2024; she joined the firm in early 2021.

AIA has been in business since 1981. Schmidt joined the company in 2018 and has been CEO since 2020. “She has been a driver behind AIA’s growth and success,” the companies said in a statement.

Bauer has said iPROMOTEu had a strong first half this year and is enabling the success of its affiliates through agency-quality marketing tools and investments in its iSUITE technology, including full ERP integration and the launch of a mobile app. In May, Dave Saracino, a previous Counselor Lifetime Achievement recipient, who like Bauer previously worked at Counselor Top 40 supplier Koozie Group (asi/40480), joined the company in a senior VP role.