New York City-headquartered Whitestone Branding (asi/359741), a Counselor 2024 Best Place to Work, has acquired Ontario-based Merchful (asi/267634).
Financial terms of the deal between the privately owned distributors were not released, but Whitestone President Joseph Sommer told ASI Media that the now combined firm is projecting more than $20 million in annual total revenue for 2024.
In addition to operating in Canada, Merchful has entities in the United Kingdom and Ireland, and a partner in the U.K., generating about half of its revenue in Europe, Sommer shared. Whitestone has acquired that revenue and partner relationship, he told ASI Media.
As a result, Whitestone can now provide production, distribution, fulfillment and warehousing in North America and Europe, which Sommer said provides logistical advantages and cost savings for clients.
“We are thrilled about this acquisition as it aligns perfectly with our growth strategy,” Sommer said. “The fit for our business couldn’t be better, thanks to our shared values, approach to business and, most importantly, Merchful’s exceptional and experienced team.”
Patti and Glen Rapoport, former owners of Merchful, are staying on for a one-year transition period. Merchful staff are being integrated into Whitestone.
“When we decided it was the right time to sell Merchful, we looked for a buyer who could leverage our global strategy and share our values,” Patti and Glen Rapoport said in a joint statement. “Our first call with Joseph lasted three hours, and it was clear that Whitestone ticked every box. It was an easy decision. We are thrilled to integrate our team into Whitestone’s award-winning culture and believe this combination will bring an unrivaled customer experience and growth opportunities for our staff.”
Sommer noted that Whitestone’s acquisition was self-funded; the company is not publicly traded or backed by a private equity firm. He said Whitestone is actively working toward making additional acquisitions.
“Over the next decade, our goal is to acquire seven to 10 companies,” Sommer said.
Sommer founded Whitestone in 2013. While headquartered in his native New York, the company operates on a fully remote work model and has team members around the country, executives said.
Whitestone ranked first in the medium-sized company category and second overall on Counselor’s 2024 list of the Best Places to Work in the promotional products industry. Employees said that the three words that best describe the distributorship are “innovative,” “creative” and “collaborative.”
Following a lull in the latter half of 2023, mergers and acquisitions in the industry have picked up steam again.
