Clearwater, FL-based Top 40 supplier Koozie Group (asi/40480), formerly known as BIC Graphic North America, has acquired fellow Top 40 supplier IMAGEN Brands in a deal announced Tuesday, Dec. 22. Financial terms of the acquisition were not released.

David Klatt, CEO, Koozie Group

Executives for Koozie Group said that the acquisition will not disrupt day-to-day operations at IMAGEN, which is parent company of Vitronic (asi/93390) and Crown (asi/47700). IMAGEN, a hard goods supplier, will continue to focus on selling categories like rainwear, bags, drinkware, plushies and coolers.

“As a stand-alone business, the current IMAGEN Brands team will operate business as usual, utilizing their current order processing systems and producing all products out of their Doniphan, MO headquarters while ensuring they continue to deliver on their 48-hour service promise,” Koozie Group said in a statement.

Executives noted that all sales, service and operations teams will continue to function separately as IMAGEN Brands (including Vitronic and Crown) in the promotional products industry.

Current IMAGEN Brands President Paul Lage, a member of Counselor’s Power 50, a definitive ranking of the most influential people in promo, will not be making the transition to Koozie Group. Some members of the IMAGEN Brands management team will remain in their roles, including Lisa LeMond, IMAGEN’s vice president of sales and customer service, who will report directly to David Klatt, CEO of Koozie Group.

Koozie Group has proactive plans for IMAGEN Brands. “In addition to providing more resources and marketing support, Koozie Group plans to invest in the IMAGEN Brands business to better serve their customers,” the company said in a statement.

Koozie Group is a portfolio company of private equity firm H.I.G. Capital. Klatt said the PE firm’s support was instrumental to making the acquisition. “This acquisition is part of our long-term plan for scalable and sustainable growth within the promotional products market and we appreciate that H.I.G. Capital continues to support our vision,” said Klatt. “This allows us to provide the additional necessary resources and marketing support needed to help grow the IMAGEN Brands business.”

With reported 2019 North American promotional product revenue of $310 million, Koozie Group ranked 7th on Counselor’s latest list of the largest suppliers in the industry. IMAGEN Brands ranked 26th on the same list, based on 2019 North American promo revenue of $58.3 million.

IMAGEN Brands, which offers decoration services as well, carries brands that include Coleman, ShedRain, Chelsea Teddy Bear and Rubbermaid. While the firm’s sales tally is far into eight figures, the company has struggled in recent years. Its 2019 revenue total was down 3.8% from 2018. The company’s five-year average annual growth was in the negative too: -2.6%.

Koozie Group has also had its struggles of late, with year-on-year revenue down 1.3% in 2019 even as the promo industry experienced a record year for distributor sales of $25.8 billion. The firm’s five-year average annual growth rate is also negative: 0.8%.

Still, Koozie Group announced earlier this year that it was rebranding to that name from its former name of BIC Graphic North America. According to company executives, the name change is about more than just a new company title. It also heralds enhancements in service, products and sustainability initiatives.