Fully remote distributorship Whitestone (PPAI 666851, Silver) has announced the acquisition of Merchful (PPAI 100466, Standard-Base), a multi-million-dollar distributorship with offices in Toronto, London, Dublin and Los Angeles.
The acquisition extends Whitestone’s footprint into Canada, Europe and the United Kingdom, allowing the company to offer production, distribution, fulfillment and warehousing across North America and Europe.
- Last month, Whitestone joined Reciprocity Road, an alliance of 13 distributors located across the United States and Canada.
“We’re thrilled about this acquisition as it aligns perfectly with our growth strategy,” says Joseph Sommer, president and founder of Whitestone. “Over the next decade, our goal is to acquire seven to 10 companies, positioning ourselves as a desirable alternative to the traditional buyers in the industry who rely on outdated commissioned sales models.”
Acquiring Merchful is the first step in this journey, Sommer adds. “The fit for our business couldn’t be better, thanks to our shared values, approach to business and, most importantly, their exceptional and experienced team. We’re eager to welcome them into our bustling and vibrant culture.”
- Whitestone’s revenue grew from $5 million in 2020 to north of $16 million in 2023, Sommer says.
- The company has also made the Inc. 5000 list of the fastest-growing private companies in the U.S. for six consecutive years, ranking No. 2,207 in 2023 with a three-year growth rate of 252%.
‘Easy Decision’
With this acquisition, Whitestone not only gains a global presence, but also Merchful’s team and client roster.
- The integration of Merchful’s staff into Whitestone is effective immediately.
“When we decided it was the right time to sell Merchful, we looked for a buyer who could leverage our global strategy and share our values,” say Patti and Glen Rapoport, former owners of Merchful, which launched in 1977 as Instant Promotions.
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“Our first call with Joseph lasted three hours, and it was clear that Whitestone ticked every box. It was an easy decision. We’re thrilled to integrate our team into Whitestone’s award-winning culture and believe this combination will bring an unrivaled customer experience and growth opportunities for our staff.”
