Top 40 promotional products distributor Stran & Company (asi/337725) has completed the acquisition of Gloucester, MA-based GAP Promotions (asi/199882) in an asset purchase transaction.

The deal, the definitive agreement for which was announced in January, sees Stran acquire a firm that generated $7.4 million in sales in 2020 and whose clients include household names in the beverage industry like Diageo, Molson Coors, Rémy Martin, Moët Hennessy, Samuel Adams and Heineken.

“We continue to generate strong organic growth, while focusing on accretive acquisitions that are highly synergistic with our existing operations,” said Stran CEO/President Andy Shape. “This latest acquisition of GAP Promo adds an impressive roster of top-tier beverage and consumer packaged goods clients. We also expect this acquisition will result in meaningful economies of scale.”

Gayle Piraino founded GAP in 2006. She will continue to lead GAP. Stran is also retaining all of GAP’s employees, executives said.

Stran went public last year. In December 2021, Stran shared that it raised about $42.4 million through an initial public offering on the NASDAQ and subsequent private placement of common stock and warrants. Part of those funds could be used to fuel further acquisitions.

Promo is “a highly fragmented market, ripe for consolidation, and our goal is to position Stran at the forefront of the industry,” Shape said. “We are pleased to welcome the high-quality GAP Promo team to the Stran family at this exciting time.”

Regarding financial terms of the acquisition, Shape told ASI Media that the “consideration consists of cash and equity of Stran stock at closing, a two-year fixed cash payment, and a two-year earn-out based on performance.”

Stran debuted on Counselor’s Top 40 list of the largest distributors in promo in 2021 based on 2020 North American promo revenue of $46.9 million. The Quincy, MA-based firm ranks 32^nd.