In a Nutshell

*The deal was first revealed in May and announced as complete on June 29th.

*HALO says having TPG Growth as a partner will help accelerate the distributor’s organic growth and growth by acquisition.

Audax, a private equity firm, has completed the sale of Top 40 distributor HALO Branded Solutions (asi/356000) to TPG Growth and HALO management, the companies revealed Friday. Originally announced in May, the deal’s financial terms were not disclosed.

TPG Growth, an equity platform with approximately $13.2 billion of assets under management, is the right partner to help HALO grow now and in the future, HALO CEO Marc Simon has said. “TPG is one of the largest and most prestigious PE firms in the world,” Simon has told Counselor. “They have a ‘Who’s Who’ list of portfolio companies and can bring many capabilities to bear that will make us a stronger company.”

HALO CEO Marc Simon.

Audax had acquired HALO in 2016. “The HALO team (has) transformed the business from a leader in promotional products distribution into a provider of comprehensive branded solutions across promotional products and employee recognition,” said Geoffrey S. Rehnert, co-CEO at Audax. “We wish Marc and his team continued success with their new partner.”

Renhart alludes to the fact that HALO has grown organically and through strategic acquisitions. In 2017, for example, HALO took a huge step into the incentives/recognition market by acquiring Michael C. Fina Recognition, a leading rewards and recognition firm that was later rebranded as HALO Recognition. Simon has told Counselor that HALO is pursuing additional acquisition opportunities, while engineering a 2018 that’s on track to surpass $500 million in sales.

“The company is well positioned to continue on our organic and acquisition growth trajectory, and to continue to provide our clients with innovative, customized solutions that showcase their brand and values,” said Simon in a statement. “We look forward to the next phase of HALO’s growth.”

Counselor ranks HALO Branded Solutions as the fifth largest distributor in the industry after the firm reported 2016 North American promotional products sales of $282.3 million. New rankings will be released in July.

HALO has a nationwide sales force of more than 1,200 account executives. More than 500 corporate service professionals support the sales team.