QUINCY, MA - Stran & Company, Inc. (NASDAQ: SWAG) (NASDAQ: SWAGW), a marketing solutions provider, announced today the acquisition of assets and assumption of certain liabilities of Gander Group, a company known for its casino loyalty programs. The transaction was completed through a secured party sale by the holder of Gander Group's senior financing facility.
Gander Group, which reported over $34 million in revenue in 2023, will now operate under Stran's subsidiary, Stran Loyalty Solutions, and contribute to the newly established Casino Continuity and Loyalty group. The acquisition is expected to offer Stran significant cross-selling opportunities and operational efficiencies, aiming to enhance revenue growth and margins.
Josh Blake, CEO and founder of Gander Group, along with Bruce Batcheller, COO, will join Stran Loyalty Solutions to support the integration and growth of the Casino Continuity and Loyalty group. Andy Shape, CEO of Stran, expressed confidence in the acquisition, projecting an annualized revenue run rate to surpass $100 million and anticipating a positive cash flow and accretive impact for stockholders.
The acquisition is seen as a strategic move to bolster Stran's presence on the West Coast and to cross-sell Gander Group's casino continuity and loyalty solutions across various verticals. This is expected to increase value for Stran's stakeholders and expand its market penetration.
Stran, with a history of over 29 years in the promotional products industry, serves Fortune 500 companies across multiple industries, managing promotional marketing, loyalty and incentive, and other campaigns. The company emphasizes the use of promotional products and branded merchandise to drive brand awareness and sales.
The information in this article is based on a press release statement, and it reflects the company's expectations and projections at the time of the announcement.
InvestingPro Insights
As Stran & Company, Inc. (NASDAQ: SWAG) navigates through the acquisition of Gander Group to bolster its Casino Continuity and Loyalty group, the financial health and market sentiment around SWAG is pivotal to understanding the potential impact of this strategic move. According to InvestingPro data, SWAG holds a market capitalization of $22.7 million, showcasing the size and scale of the company within its sector.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, aligning with CEO Andy Shape's projections of an annualized revenue run rate surpassing $100 million. This optimistic outlook is further supported by SWAG's revenue growth of 28.74% in the last twelve months as of Q1 2023. Moreover, the company's gross profit margin stands at a healthy 32.78%, indicating a robust ability to translate sales into profit.
However, the company's stock price has experienced significant volatility, as evidenced by a 9.63% drop over the last week. This volatility is a critical factor for investors to consider, especially given the high earnings multiple of SWAG, with a P/E ratio of 1117.65. Despite this, the company's low revenue valuation multiple may suggest an attractive entry point for those who believe in the long-term value proposition of Stran's expanded capabilities post-acquisition.
For those interested in a deeper dive into the financial nuances of Stran & Company, InvestingPro offers additional InvestingPro Tips that can shed light on the company's future prospects and financial stability. With more tips available, investors can gain a comprehensive understanding of SWAG's position in the market and make more informed decisions.
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