Audax Private Equity has partnered with management to acquire Halo Branded Solutions, a distributor of promotional products used to support corporate branding and marketing.
Halo’s products are used as trade show giveaways, employee incentives, safety gifts, reward programs, and healthcare promotional products. The company’s products are numerous and are group in such categories as auto home and tools; gifts and awards; calendars; key chains and tags; novelty items and toys; outdoor and leisure products; technology; wellness and safety; pens and writing products; bags and totes; drink ware; clothing; food and beverage; stationery; and towels. The company serves customers in the agriculture and farming, automotive, construction, finance, healthcare, and real estate sectors. Halo (formerly known as Lee Wayne Corporation) was founded in 1952 and is headquartered 50 miles northeast of Moline in Sterling, IL (www.halo.com).
No changes in management or operating direction are planned as part of the transaction. “Our senior management team invested alongside Audax in this transaction,” said Marc Simon, CEO of HALO. “Our team is focused on delivering the greatest value proposition for selling professionals in our industry. Our team’s passion and experience are the real assets in this partnership.”
Audax estimates that promotional products are a $20 billion per year industry. “We are impressed with Halo’s leadership position in an industry that is positioned for strong growth. The loyalty of their sales team, passion of their support staff, and vision of their leadership team provide an attractive platform for continued impressive financial performance,” said Geoffrey Rehnert, Co-CEO of Audax.
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).
“We are very pleased with our new partners at Audax. They are a prestigious investment firm with a proven track record of building success with their portfolio companies,” said Mr. Simon.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-19-16
