Stran Promotional Solutions (asi/337725), a Counselor Top 40 distributor, has acquired the assets of Gander Group, a California-based provider of casino continuity and loyalty programs that generated more than $34 million in 2023 revenue.

The move represents a deeper push by Quincy, MA-headquartered Stran into the gaming and entertainment markets, executives said. The firm made the acquisition through a newly formed subsidiary, Stran Loyalty Solutions, which will operate the Gander Group business as an extension of a new Stran division that’s focused on casino continuity and loyalty initiatives.

Andy Shape, Stran Promotional Solutions (asi/337725); Josh Blake, Gander Group

Financial terms of the deal weren’t immediately clear, but Stran CEO Andy Shape said the company is now projecting more than $100 million in 2024 revenue.

“Gander Group's industry-leading solutions for casino continuity and loyalty programs perfectly complement our comprehensive suite of promotional products,” said Shape, a member of Counselor’s Power 50 list of promo’s most influential people. “In addition, this strategic move allows us to cross-sell these offerings across all verticals, further enhancing the value we deliver to our stakeholders, while increasing our penetration and recognition on the West Coast.”

Counselor Top 40 #promoproducts distributor Stran Promotional Solutions, a publicly traded company projects that half-year sales are up over 10% on an annual basis, a performance that outpaces the average industry performance. Details: https://t.co/vWDNATnd8j@stranpromosol

— Chris Ruvo (@ChrisR_ASI) August 13, 2024

Gander Group formed in 2009. Beyond its work in the casino vertical, Gander Group has provided solutions for well-known brands, including Guy Fieri, Hell's Kitchen, The Voice and PanAm. Josh Blake, CEO and founder, and Bruce Batcheller, chief operating officer, are joining Stran Loyalty Solutions.

“The sale will provide our notable casino and entertainment clients with unparalleled resources and expertise to support and accelerate a growth trajectory,” said Blake. “We are also confident that Stran’s capabilities can help build upon the strong foundation Gander has established and deliver even greater value to our clients in the future.”

Formally, Stran Loyalty Solutions acquired the assets and certain liabilities of Bangarang Enterprises, LLC, which does business as Gander Group, through a secured third-party sale initiated by the holder of Gander’s senior financing facility.

Shape explained the background on that to ASI Media. "We acquired Gander because we saw significant potential in their business model and operations," the CEO said. "Like many in our industry, they faced financial challenges resulting from the COVID-19 pandemic, leading to high-interest borrowing that added debt to their balance sheet and pressured their cash flow. However, Stran recognized this as a strategic opportunity to strengthen our portfolio and secure long-term growth by integrating a solid business with considerable potential. Our focus now is on leveraging Gander's strengths and integrating them into our operations to deliver even greater value for our shareholders."

Based on reported 2023 North American promotional product revenue of $82.1 million, Stran ranked 27th on Counselor’s most recent list of the largest distributors in the industry.

Stran became a publicly-traded company at the end of 2021. Since then, the firm made four acquisitions prior to the Gander purchase. Stran has consistently grown sales organically too, tallying an annual revenue record in 2023 and recording its first full-year, annual after-tax profit since listing publicly. In the January through June half-year of 2024, Stran said preliminary unaudited figures show that sales are up more than 10%.