Outsourced marketing solutions provider Stran & Company Inc (NASDAQ:STRN) has not had a particularly great time in the markets over the course of the past week and the trend remained the same yesterday as the stock tanked by 6%. That took the cumulative decline over the course of the past week to as much as 33%.
Trading Data
On Tuesday, STRN stock fell 6.16% to $3.20 with 2.97 million shares, compared to its average volume of 3.48 million shares. The stock has moved within a range of $3.1100 – 3.6900 after opening trade at $3.6.
Stran & Company (STRN) to Acquire GAP Promo
Considering the sort of decline that was recorded yesterday, it may be the right time for investors to take a look at the developments from yesterday. Stran & Company announced yesterday that it had inked a definitive agreement by way of which it seeks to complete the acquisition of GAP Promotions LLC.
The acquisition is going to be completed through an asset purchase transaction. In this regard, it is also necessary to point out that the acquisition is expected to be completed at some point in the first quarter of this year.
In addition to that, all the customary closing conditions would also need to be fulfilled. GAP is a full service agency that is solely dedicated to promotions and such an addition to the portfolio of Stran & Company could prove to be a significant boost.
Key Quote
Andy Shape, President and CEO of Stran, commented, “We have long admired the work of GAP Promo, as their design and execution of branded merchandise programs and innovative custom displays is top quality. Gayle and her team have built a tremendous business through their singular focus on providing customers with brand-relevant experiences. Additionally, their client portfolio consists of top-tier beverage and consumer packaged goods companies, which we believe will be highly complementary to our existing business. We are excited to build upon their success and believe that through our combined offerings we can provide an even more compelling and comprehensive service offering for our customers. Importantly, we expect this transaction to be highly accretive, given GAP Promo’s track record of profitability and the anticipated economies of scale.”
Technical Data
STRN stock is below the 20-Day and 50-Day Moving averages of $4.42 and $4.88 respectively. Moreover, the stock is trading below the 200-Day moving average of $4.86.
