STERLING – Two years after it was acquired by Audax Private Equity, Halo Branded Solutions has been sold to a private equity firm with deeper pockets.
Halo announced the deal Thursday with TPG Growth, a firm that can bring more working capital to the table for the company’s continued growth.
Halo said the sale will have no impact on local operations. Financial terms were not disclosed for the deal, which is subject to regulatory approval and set to close in the second quarter.
TPG Growth has headquarters in Fort Worth, Texas, and San Francisco, and an international presence in Europe, Asia and Australia.
Halo's sustained growth in a fragmented industry continues to bring interest from private equity investors after continually hitting its growth targets.
"There are roughly 20,000 distributors of promotional products in the United States, and Halo is one of the three largest," said Terry McGuire, senior vice president of marketing and communications at Halo.
Audax has more than $12 billion in assets under management, while TPG has more than $82 million in working capital. That capital can be used for more acquisitions to help Halo gain market share in an industry that is rapidly consolidating.
"This is a time of consolidation in promotional products, and Halo is uniquely positioned to take advantage of the trend," McGuire said.
Halo said its new owners would take an active role in the company's growth plans.
“TPG Growth is a hands-on partner that understands our business and supports our vision," Halo CEO Marc Simon said in a news release. "We look forward to leveraging their growth and business-building expertise as we continue to expand and enhance operations.”
The new owners said Halo's position in its industry presented an exceptional investment opportunity.
“In Halo, we saw the opportunity to acquire an industry leading platform that’s supported by best-in-class leadership and sales teams,” said Shamik Patel, principal at TPG Growth.
The firm is focused on accelerating Halo's growth, both organically and through acquisitions, Patel said.
As with Audax, Halo leadership will retain a stake in the company.
Halo broke ground April 4 on its new global headquarters at 1500 Halo Way, in the Meadowlands Business Park. When the company announced the expansion plans in November 2016, it said it planned to add 250 jobs locally in the next 5 years, nearly doubling its workforce.
July 2015: Newton Manufacturing – specialty advertising company based in Newton, Iowa
September 2015: Harvey-Daco – promotional products distributor based in Waco, Texas
September 2016: A Branovan Company – strategic partnership with promotional products distributor based in Milwaukee
February 2017: Catalyst Marketing – creative merchandise agency based in Seattle
February 2017: Michael C. Fina Recognition – recognition and incentives company based in New York
November 2017: American Pacific Promotions, a promotional products distributor based in Livermore, California
January 2018: Caliendo-Savio Enterprises Inc. – a promotional products distributor based in New Berlin, Wisconsin