Superior Uniform Group, Inc. Announces Acquisition of BAMKO, Inc.
10 March 2016 - 11:46AM
Superior Uniform Group, Inc. (“Superior Uniform Group” or
“Superior”) (NASDAQ:SGC), today announced the acquisition of
substantially all of the assets of BAMKO, Inc. (“BAMKO”) of Los
Angeles, CA. The transaction closed today effective as of
March 1, 2016 and is an asset purchase including the assumption of
certain liabilities.
BAMKO is a full-service merchandise sourcing and
promotional products company based in Los Angeles, CA. With sales
offices in the United States, England and Brazil, as well as
support offices in China and India, BAMKO is a 24/7 operation with
a global reach. Currently serving hundreds of the world’s
most successful brands, BAMKO works with its clients to provide a
wide range of supply chain solutions, including world-class design,
sourcing, production, product development, quality control,
testing, logistics, and delivery of goods for clients across the
globe.
The purchase price consists of approximately
$15.8 million in cash, subject to adjustment, the issuance of
approximately $5.5 million in shares of Superior Uniform Group’s
common stock that will vest over a five year period, the potential
future payment of up to $5.5 million in additional contingent
consideration through 2021, and the assumption of certain
liabilities of BAMKO. The transaction also includes the
acquisition of BAMKO’s subsidiaries in Hong Kong, China, Brazil and
England as well as an affiliate in India. Concurrent with the
closing of the acquisition, Superior renewed and increased its
revolving credit facility for $20 million and refinanced its
existing term loan with a new $45 million term loan. Both
credit facilities carry five-year terms and a variable interest
rate of LIBOR plus 0.85%.
“BAMKO brings Superior Uniform Group an
outstanding sales, marketing and customer-centric team of people.
BAMKO’s elite customer base and product offerings will further
enhance our overall position in the retail, health care, food
service, transportation and other markets that we serve," said
Michael Benstock, CEO of Superior Uniform Group. “We are very
pleased to combine our financial strength and vast resources with
BAMKO’s strong leadership and reputation for creativity, innovation
and excellence. We have been searching for the right team to
partner with to expand our presence in the branded merchandise and
promotional products market for several years now. We are
very excited by BAMKO’s history of significant sales growth and its
extensive support network in China and India. Additionally,
we believe their product offerings will be a natural extension of
the products that Superior already provides to its customers and
will present an opportunity to further enhance both Superior’s and
BAMKO’s future growth prospects. BAMKO’s revenues for the year
ended December 31, 2015, were approximately $31.5 million. We
expect this acquisition to be accretive to our operating results in
2016 exclusive of acquisition related expenses.”
“For over 15 years we have tirelessly built a
reputation for quality and ingenuity, developing great products,
ideas, and designs, that bring our customers’ brands to life,” said
Phil Koosed, CEO and Co-Founder of BAMKO, Inc. “We show up
every day driven to constantly improve our products, service, and
technology. We think our commitment to constantly improve our
customers’ experience aligns perfectly with Superior’s philosophy
of always putting customers first. This union with Superior will
give us the financial resources to take our customer experience to
a whole new level while giving us the opportunity to invest in the
growth and development of our business. We are very happy to be
part of the Superior family of companies. We look forward to
working with Superior while building on the unique culture that has
made us so successful.”
BAMKO will continue to service its customers
from its locations in Los Angeles, CA, New York, NY, Hong Kong,
China, England, Brazil and India and will operate as a subsidiary
of Superior Uniform Group. The principals of BAMKO will
remain with the business.
About Superior Uniform Group, Inc.
Superior Uniform Group® (NASDAQ:SGC), established in 1920, is
one of America’s foremost providers of fine uniforms and image
apparel. Headquartered in Seminole, Fla., Superior Uniform
Group manages award-winning uniform apparel programs for major
corporations nationwide. Leaders in innovative uniform
program design, global manufacturing, and state-of-the-art
distribution, Superior Uniform Group helps companies achieve a more
professional appearance and better communicate their brands –
particularly those in healthcare, private security, retail,
hospitality, transportation and food service industries.
The company’s commitment to service, technology, quality and
value-added benefits, as well as its financial strength and
resources, support customers’ diverse needs while embracing a
“Customer 1st, Every Time!” philosophy and culture. Superior
Uniform Group primarily sells its products through its signature
brands Superior I.D.™, Fashion Seal Healthcare® and HPI
Direct®. Superior Uniform Group is also the parent company
for The Office Gurus®, its BPO and Contact Center vertical.
For more information, call (800) 727-8643 or
visit www.SuperiorUniformGroup.com.
Statements contained in this press release which are not
historical facts may constitute forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. All forward-looking statements are subject to risks and
uncertainties, including without limitation, those identified in
the Company’s SEC filings, which could cause actual results to
differ from those projected.
Contact:
Andrew D. Demott, Jr.,
COO, CFO & Treasurer
(727) 803-7135
Hala Elsherbini,
Halliburton Investor Relations
(972) 458-8000
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