Top 40 supplier HUB Promotional Group announced its second major acquisition this week when the Braintree, MA-based firm said today that it has purchased Origaudio (asi/75254), a fast-growing California-based supplier that specializes in innovative technology and lifestyle products. Financial terms of the deal, which closed Sept. 14, were not revealed.

Joe Fleming, CEO of HUB Promotional Group, told Counselor that the company plans to include Origaudio’s sales in its 2018 revenue tally. “It will place us among the top ten suppliers in the industry,” said Fleming. HUB currently ranks 15^th on Counselor’s list of the industry’s largest suppliers with reported 2017 North America promotional product revenue of $103.5 million.  

Podcast

In this exclusive podcast, Origaudio Co-Founder Jason Lucash discusses the deal and what the future holds.

Founded in 2009, Origaudio has emerged as one of the fastest-growing suppliers in the promo market. Between 2013 and 2015 alone, the firm increased sales by 636%. In 2017, co-founders Jason Lucash and Mike Szymczak were ASI’s Supplier Entrepreneurs of the Year. In recent years, Origaudio’s products have garnered a slew of Counselor Design Awards. That’s in addition to creating a product, Fold n’ Play speakers, that Time magazine named as one of the “50 Best Inventions of the Year” in 2009. The impressive track record of innovation and growth made Origaudio an extremely attractive company to partner with, said Fleming.

Jason Lucash and Mike Szymczak will continue leading Origaudio, while taking on additional roles with HUB Promotional Group.

“The Origaudio team has worked very hard to consistently deliver innovation and value to their customers, and their rapid growth and recognition in the industry speaks for itself,” Fleming said. “The addition of Origaudio to the HUB family of companies enables us to expand our product lineup and become the leading hard goods supplier in the promotional products industry.” He further added that Origaudio’s West Coast location “adds to our speed and ability to service and delight our customers.”

Joe Fleming, CEO, HUB Promotional Group

Going forward, Origaudio’s existing team and multi-line rep force will remain in place. The company will go to market under the Origaudio name and operate under the same ASI number, Lucash told Counselor. “We will continue to produce product out of Orange County, CA and will also maintain our creative and product development office in the Bay Area,” he said. “The goal also in 2019 and beyond is to produce our products out of the different facilities that are under the Hub umbrella in order to get product in distributors hands even faster.”

Lucash and Szymczak will remain in their current Origaudio roles as president and chief operating officer, respectively. In addition, Lucash will become senior vice president of marketing and product for HUB, while Szymczak will assume the added responsibility of vice president of business development for HUB. “Our goal is to reposition the (HUB) brand image in the promo space and make more of a cohesive effort to align all the companies that are part of the HUB portfolio,” Lucash told Counselor.

Executives said integration between HUB and Origaudio is expected to be seamless for customers and employees. “HUB provides us with a powerful North American distribution network that expands our reach and delivery capabilities,” said Lucash. “Myself, Mike and the rest of the Origaudio team are thrilled to gain a partner that shares our values and is committed to new and innovative ways of doing business.”

On Monday, HUB revealed that it had purchased Canada-based BCG Creations (asi/37693). Founded in 1981, BCG is known for its emblematics and wood products. The deal adds custom lapel pins, keychains, medals, lanyards and ornaments to HUB’s overall offerings.

Fleming told Counselor that more acquisitions could be in the cards. “We have been busy, and I’ll say this, we aren’t done yet,” Fleming said.

Beyond Origaudio and BCG, HUB Promotional Group includes HUB Pen (asi/61966), Beacon (asi/39250), Best Promotions (asi/40344), Cooler Graphics (asi/80345) and Debco (asi/48885) – the last of which HUB acquired in June.