Top 40 promotional products distributor BAMKO (asi/131431) has acquired Sutter’s Mill Specialties, Inc. (asi/340210), a Tempe, AZ-based promo products distributor that generated non-PPE revenue of $24.5 million in the preceding 12 months. Financial terms of the deal were not released.

BAMKO President Jake Himelstein said the acquisition will enable the Los Angeles, CA-based firm to add expertise and physical infrastructure that allows for the offering of a spectrum of in-house production and decoration capabilities. Those capabilities include laser engraving, full color wrap digital printing, pad printing, embroidery, and custom foam packaging.

Jake Himelstein, BAMKO

“We’ll be able to offer unique customization options that we will build directly into our proprietary technology,” Himelstein told ASI Media, adding that the vertical integration removes a significant friction point from the supply chain.

Himelstein noted that Sutter’s Mill has interwoven robotics and artificial intelligence directly into its production systems.

“When we learned about the advanced robotics systems that they’ve developed and continue to develop, the synergistic potential with our proprietary technology systems was really, really exciting,” Himelstein said. “We will continue to invest in this, and the integration of robotics and artificial intelligence systems will become a significant part of our larger strategy.”

Himelstein added that the acquisition also helps BAMKO expand its warehousing and distribution footprint by adding a distribution hub in the Southwest. “Most importantly,” he asserted, “we’ve added talent, leadership and expertise to our team that will make us all better.” 

That team includes Sutter’s Mill President Michael Butler, who’ll be continuing with the company following the acquisition. Sutter’s Mill will go to market under its own name. Supplier Zing Manufacturing (asi/99025), formerly under common ownership with Sutter’s Mill, will not be part of BAMKO/Sutter’s Mill going forward.

Butler and Himelstein said that both Sutter’s Mill and BAMKO share unique, complementary cultures that focus on growth, positivity and competitive spirit, making the partnership a good match. Sutter’s Mill clients include household name brands like Pepsi, John Deere, Hilton Hotels & Resorts, Aflac, Shell and more.

Following a COVID-induced slumber, merger & acquisition activity has reawakened & is on the rise in the #promoproducts industry. The transactions will drive consolidation within the space. What's fueling activity? https://t.co/0dHhrAMEDC @ASI_MBell @Tim_Andrews_ASI @CJ_ASIMedia

— Chris Ruvo (@ChrisR_ASI) October 21, 2021

“We see where the direction of our industry is headed and BAMKO has proven that it is at the forefront of that change, which is very clearly transforming the future of branded merchandise,” Butler opined. “While the business side and growth opportunities are so exciting, what excites me most is the opportunity to join forces with such a talented, hard-working, and high character leadership team. The future is extremely bright here at Sutter’s Mill.”

The deal comes amid a rise in merger and acquisition activity in the promotional products industry. Recent notable deals include Custom Ink acquiring Swag.com (asi/287954), as well as S&S Activewear (asi/84358), the third largest supplier in promo, buying TSC Apparel (asi/90518), the 14^th largest supplier.

With reported 2020 North American promotional products revenue of $193.9 million, BAMKO ranked 11^th on Counselor’s most recent list of the largest distributors in the industry. BAMKO founder Phil Koosed placed 1^st on Counselor’s Power 50 list of the industry’s most influential people.