As first reported in a Breaking News Alert yesterday, two Top 40 distributors are joining forces. Staples Inc., the parent company of Staples Promotional Products (asi/120601), has agreed to acquire Canada-based Accolade Promotion Group (APG, asi/102905). Financial terms and conditions of the transaction were not disclosed, and a company spokesperson told Counselor they couldn’t yet say when the deal would officially close.

“The acquisition will further Staples’ ability to bring customers a strong brand partner with a broader offering in Canada,” said Steve Bussberg, senior vice president of Staples Advantage, which oversees the Staples Promotional Products business. “APG’s vast experience serving customers in the financial and oil & gas industries will complement our strengths in the automotive, manufacturing and consumer goods industries.”

APG had been a division of retailer Golf Town (which is a subsidiary of Austin, TX-based Golfsmith International), but it now will become part of the Staples organization. Dan Craig, the head of APG, will become managing director of Staples Promotional Products Canada. Pam Westman, the current managing director of Staples Promotional Products in Canada will lead the integration of the acquisition and spearhead global expansion for Staples Promotional Products.

“We are looking forward to joining forces with Staples to more effectively deliver a great customer experience,” said Craig, who is a member of Counselor’s Power 50. “The acquisition will allow us to expand our global reach and extend the benefit of significant investments in technology, compliance and supply chain.”

Staples Promotional Products holds the number-one spot on Counselor’s Top 40 and is the largest distributor of ad specialty items in North America. APG ranks 21st on the Top 40, and recently reported to Counselor that it had 2014 North American ad specialty revenues of $75.7 million, a 2% increase over the previous year. While Staples doesn’t disclose the revenues of specific divisions, Counselor estimates that the combined promotional products revenue of Staples and APG will surpass $500 million annually.