GatewayCDI Acquired By UK Firm Brand Addition
As first reported Monday in a PPB Newslink Breaking News, distributor GatewayCDI (UPIC: GATE0002) has been acquired by Brand Addition, a UK-headquartered promotional merchandise business with offices in Europe and Asia. St. Louis, Missouri-based GatewayCDI will begin serving clients under the Brand Addition name, with operations and structure continuing uninterrupted. The combined business will have sales of approximately $120 million and 350 employees across 10 offices in the U.S., Europe and Asia.
GatewayCDI, founded in 1988 by Chuck and Susie Fandos, provides corporate programs and promotional product services throughout the U.S. via its 70-person team. It will continue to operate under the leadership of Chuck Fandos, CAS, Conrad Franey and the current senior management team, and will change its name to Brand Addition in due course. Chuck Fandos will remain the CEO of Facilis U.S. The financial details of the acquisition were not disclosed.
In an exclusive interview with PPB Newslink, Brand Addition CEO Chris Lee said the deal has been in the works for about 18 months, adding that he met the Gateway CDI principals through a mutual client.
The acquisition is Brand Addition’s first entry into the U.S. market. The company was originally part of distributor 4Imprint and in 2010 it began handling 4Imprint’s corporate program business. In March 2012, it was bought from 4Imprint.
“Chuck Fandos and Conrad Franey have built a tremendous team that we today welcome into the Brand Addition family,” says Lee. “The team at GatewayCDI already delivers amazing products and services in the U.S. and we are excited about bringing our businesses together to offer clients the choice of working with us throughout the U.S., Europe and Asia.
“The culture of the business and the trust that’s been there between the principals of the business is really the foundation,” he says. “We’re excited about going forward with it.”
Fandos adds, “This deal made sense for everybody because the cultures lined up really well. We go to market the same way—going after corporate accounts that do programs, and that matched up really well as does the ability to bring that synergy to the market with one business card to clients in Europe, Asia and North America.
“We’re thrilled to join Brand Addition. With their support, GatewayCDI will be even better placed to develop our business in the U.S. and offer our clients the benefit of a consistent merchandise strategy into Europe and Asia.”