November 24, 2021
S&S Activewear Completes Acquisition of TSC Apparel
The deal sees the promo products industry’s third-largest supplier purchase the 14th-biggest supplier.
It’s a done deal.
S&S Activewear (asi/84358), the third-largest supplier in the promotional products industry, has completed the acquisition of TSC Apparel (asi/90518), promo’s 14th-largest supplier.
Financial terms of the deal between the privately held companies were not released. The acquisition was announced in early November 2021.
“We’re excited to inherit such a well-established company,” Frank Myers, S&S’s chief operating and financial officer, has said. “For years, we have thought it made a lot of sense to acquire TSC, not only for both our companies, but for our industry as a whole. We are bringing together two organizations dedicated to creating a first-class customer experience.”
Beginning next year, the TSC brand will be retired, and the operations of the business will function under the S&S brand going forward. The majority of the TSC executive team will be transitioning out over the early part of 2022.
S&S executives said that joining forces with TSC will allow for a greater depth of inventory and an expanded product offering. S&S products currently can reach 99% of the U.S. within two days and 44 states in just one day, executives said. Popular TSC brands like Tultex and M&O will be available through S&S, executives noted.
CenterGate Capital, an Austin-based private equity investment firm, had held TSC Apparel and was the seller in the transaction. Private equity firm Clayton, Dubilier & Rice (CD&R) is the majority stakeholder in S&S Activewear. CD&R acquired that majority in March 2021.
Within the last decade, S&S Activewear has grown from a successful Midwestern supplier into a national apparel juggernaut with a presence in Canada, too. The firm’s footprint includes approximately 4 million square feet of warehouse space and more than 2,000 employees. CEO Jim Shannon ranked 12th on Counselor’s 2021 Power 50 list of promo’s most influential people.
Merger and acquisition activity has been increasing in the promotional products market, and the S&S/TSC deal is another sign of the trend. This is S&S’s fourth acquisition since 2010. The supplier reported 2020 North American promo product revenue of $1.4 billion.