Sign-Zone LLC, the Minnesota-headquartered parent firm to Top 40 supplier Showdown Displays (asi/87188), announced today that it has acquired AAA Innovations (asi/30023), an Orangeburg, NY-based supplier that specializes in hard goods that include umbrellas, coolers and outdoor recreational products. Financial terms of the deal were not released.

“AAA Innovations’ unique products and branding solutions have helped them build strong reseller partnerships in the promotional products industry,” said John Bruellman, CEO of Sign-Zone and a member of Counselor’s Power 50 list of promo’s most influential people. “We’re extremely excited to bring additional production capacity, expanded geographic presence and tremendous expertise and talent into our organization.”

AAA Innovations generated about $40 million in total revenue in 2023. Speaking to ASI Media, Bruellman said that the acquisition will put Sign-Zone’s total annual global revenue across all of its business channels – promo and others – into the $200 million range.

AAA Innovations and Showdown Displays will continue to operate on a largely standalone basis, while seeking opportunities to leverage the operational resources and geographic locations of both organizations, executives said. Combined, the firms will have approximately 400,000 square feet of production and fulfillment space across facilities in North America.

Jeffrey Nanus, former owner of AAA Innovations, will continue as president of AAA.

“Joining the Sign-Zone family provides limitless possibilities for our business and team of professionals,” said Nanus. “The entire AAA team is excited about the opportunities this acquisition creates, including accelerated growth from additional investment.”

“Joining the Sign-Zone family provides limitless possibilities for our business and team of professionals.”Jeffrey Nanus, AAA Innovations

AAA Innovations has placed an emphasis on using eco-friendly materials in the products it creates.

Meanwhile, Sign-Zone is a manufacturer and supplier of visual communication, event and display merchandise. Its companies include Showdown Displays and Karisma Decor. Beyond its Minnesota operations, Sign-Zone also has a European presence, operating as Showdown Displays Europe, with primary locations in the Netherlands and the Czech Republic. Showdown Displays recently won a global customer service honor - a “Steve Award.”

Like AAA, Showdown Displays has focused on eco, something evidenced by the firm last year earning a Silver Medal ranking from EcoVadis, a globally recognized assessment platform that rates businesses' sustainability.

This is the second acquisition involving a Top 40 company announced during the week of April 7^th. On Monday, Top 40 distributor Geiger (asi/202900) revealed that it has purchased O2 Marketing + Design (asi/286464), a Pleasant Hill, CA-based distributorship that’s been in business for 24 years.

Mergers and acquisitions in the promotional products industry were on the rise again in the early part of 2024. While factors like the COVID-19 pandemic, an uncertain economy and soaring interest rates slowed sales of industry businesses for periods in recent years, the general trend in promo has been toward considerable company buying and selling.

The phenomenon is being driven by a variety of elements. They include: a significant number of more experienced owners looking to exit their companies; increased private equity investment in promo; the fragmented nature of the merch market; and businesses being eager to gain capabilities and efficiencies to scale cost-effectively in an era in which the expense and complexity of conducting commerce has increased.

Based on reported 2022 North American promotional product revenue of $104.5 million, Showdown Displays ranked 16th on Counselor’s most recent list of the largest suppliers in the industry.