Archway moves into consumer promotions with acquisitionArchway Marketing Services, which provides fulfillment services, print management and business intelligence to businesses, has entered a deal to acquire the supply chain management division of Resolve.
The deal is expected to close at the end of June.
While the two companies have competed in the past on the business-to-business side on fulfillment of marketing and point-of-sale materials, the deal with Resolve brings capabilities in consumer-facing marketing materials. These include direct mail, letter shop, consumer rebates and premiums, sweepstakes and contests, loyalty and reward programs consumer promotional Web sites.
“Our clients are looking to consolidate vendors and have more business with a fewer number of suppliers,” said Mike Moroz, president at Archway Marketing Services, adding that he expects the deal will help Archway pick up additional business from existing clients as well as new customers.
Archway will be assuming the leases on 13 Resolve production facilities in the US and Canada as a result of this deal. “This will give us a much bigger geographic presence,” said Moroz. In terms of warehousing production space, Archway will go from having 1.5 million square feet to 3.5 million square feet.
As a result of the acquisition, Archway will nearly double in size to annual revenues of nearly $200 million and approximately 1,500 employees. The company will have 21 locations with two managed facilities as well as multiple on-site account management locations. The entire Resolve team will join Archway.
Archway has more than 40 clients, including, Target, Lowe's, American Eagle Outfitters, Mars and Nestle.
Resolve's supply chain management division has approximately 225 clients throughout the US and Canada, including Cadbury Adams, McNeil, Neutrogena, Honda, Miller Brewing, Pepsi and Staples.