HPG (asi/61966), the ninth-largest supplier in the North American promotional products industry, has acquired Eagan, MN-based supplier Webb Company (asi/95838) – a move that expands Braintree, MA-headquartered HPG’s reach in the personal care products category.

Finalized on Monday, Aug. 31 and announced publicly on Tuesday, Sept. 8, the deal’s financial terms were not released.

Chris Anderson, CEO, HPG

Founded in 1986 by current CEO Alan Webb, Webb Company specializes in manufacturing, decorating and shipping USA-made lip balms, mints and hand sanitizers. During the COVID-19 pandemic, Webb has emerged as an industry leader in U.S.-made hand sanitizers, according to HPG executives. That’s among the key reasons the Top 40 firm feels the acquisition is a smart business decision.

“With Webb’s expertise in personal care — and, specifically, USA-made hand sanitizers — their addition to the HPG family provides our distributor partners with a wide array of high-quality personal care products, made in the heartland, and backed by the power and reach of HPG,” said HPG CEO Chris Anderson. “By adding these key personal care categories to our already broad range of hard goods, we have made it even easier for our customers to do business with HPG.”

As part of the deal, Alan Webb will continue to oversee the Eagan, MN operation, which will become HPG’s second production facility in Minnesota, joining HPG’s New Ulm-based subsidiary Beacon Promotions. Plans are in the works to double the Webb site’s production capacity by the end of 2020 – a build-out that HPG says will add to its North America-wide footprint (the company has nine locations across the U.S. and Canada) and further strengthen its position in the personal care product niche. The Webb facility is currently 60,000 square feet.

“Webb Company’s manufacturing expertise, combined with our fulfillment, drop shipping, and a wide variety of large-scale, quick-turnaround decorating capabilities, has enabled us to make our distributors excel even in the face of widespread hand sanitizer shortages,” said company President Daniel Webb, who has been with the supplier for 17 years and who will be moving forward in the expanded role of vice president of business development with HPG. “Now, I am excited to take our business to a whole new level by partnering with HPG.”

Daniel Webb, Webb Company president, is joining HPG in the expanded role of vice president of business development.

Formerly known as Hub Promotional Group, the company rebranded to HPG in early 2020. Featuring more than 10,000 SKUs, HPG has a roster of brands that includes Hub Pen, Beacon, Best Promotions, Debco, BCG Creations, Origaudio, Handstands, HPG Premium Brands and now Webb Company. In August 2020, HPG launched Batch & Bodega, a new line that bundles exclusive award-winning snacks from small-batch brands with HPG’s best-selling hard good products to create giftable kits.

Between 2016 and 2019, HPG increased revenue 148%. Its 2019 North American promo sales reached $205.7 million – good enough to rank the company ninth on Counselor’s most recent list of the 40 largest suppliers in the promo industry.

“After more than 30 years in the industry, it was important for me to find the right partner and ensure Webb Company is positioned for further growth – and 30 more years of success,” said Alan Webb. “Based on their impressive rise, and track record of acquiring several other high-quality suppliers, such as Hub, Origaudio, Debco, Best Promotions, Cooler Graphics, HandStands, BCG and our neighbors at Beacon Promotions, HPG was my first call, and I could not be more pleased with the outcome.”