Did Going Public Give This Company Momentum? Stran & Company Closes First Acquisition; Adds Over $7 Million in Annualized Revenue

Photo by Catkin on Pixabay

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Some companies have seen limited growth over the past few years, perhaps because of the uncertainty brought by the COVID-19 pandemic. 

But the story seems to be different for 27-year-old marketing solutions provider Stran & Co. Inc. STRN STRNW.

Going Public

On November 2, 2021, Stran announced the pricing of an upsized $18 million initial public offering (IPO).  Concurrently, the company received approval to list its common stock and warrants on the Nasdaq Capital Market.

The IPO closed on November 12, 2021, and the total gross proceeds generated from the offering was $20.7 million, before deducting commissions and other offering expenses.

A month later, Stran announced it closed a $21.1 million private placement of the initially announced private placement of common stock and warrants. The company announced plans  to use the net revenues from the private placement to make acquisitions, build new partnerships, expand its sales team and marketing efforts and invest in technology.

Signing Contracts

As an exciting start to 2022, Stran secured a record contract with a large reputable national healthcare company to provide incentive products and literature aimed at improving consumer health behaviors. The company believes it was selected as the sole provider for this project based on its previous history of managing complex marketing programs and its ability to discover a wide array of products.

Some of the products that will be distributed in this initiative are educational collateral, branded promotional items, and unbranded medical devices that are meant to drive health behavior in pregnant women and those suffering from high blood pressure and hypertension.

Stran Co-Founder and CEO, Andy Shape, said the deal resulted from the company gaining traction in the promotional products space. The promo market is estimated at $25 billion and expects strong growth in 2022 as things begin to return to normal, such as in-person conferences. 

“The healthcare industry is among the top industries utilizing promotional products as a marketing tool to increase brand awareness and engage with consumers,” Shape said. “We believe the healthcare market represents a significant yet untapped opportunity to utilize promotional products to help drive positive and healthy consumer behavior.”

Just this week, Stran acquired GAP Promo, a full-service promotions agency that designs, sources, and develops customer brand solutions for many of the world’s leading beverage and consumer packaged goods companies. GAP Promo has been profitable since inception in 2006 and achieved $7.4 million in sales during 2020. Adding to Stran’s extensive customer base including over 30 Fortune 500 companies,  knowledge and capabilities is a client portfolio consisting of  top-tier beverage and consumer goods companies. This acquisition is expected to be highly accretive, given GAP Promo’s track record of profitability, as well as expands on Stran’s comprehensive platform. This is Stran’s second acquisition within the past 18 months and is part of it’s M&A strategy to target accretive companies within a highly fragmented industry. 

About Stran

Stran specializes in complex marketing programs to help companies and businesses realize the importance of promotional products, branded merchandise and incentive programs as tools to drive public awareness, build visibility and boost sales.

Stran is among Massachusetts companies that raised more than $5 billion from IPOs in 2021. Others include Ginkgo Bioworks Holdings Inc. DNA, Definitive Healthcare Corp. DH, and EngageSmart Inc. ESMT.

Learn more at http://www.stran.com. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.