SEMINOLE, Fla. — Superior Group of Companies (formerly Superior Uniform Group) has entered into a definitive agreement to acquire all of the outstanding stock of CID Resources Inc. for approximately $88.4 million, the company reports.
CID is a provider of branded medical uniforms based in Coppell, Texas, which has built its WonderWink®brand into one of the leading retail scrubs brands, Superior says. WonderWink®and its sub-brands, WonderWink Origins, WonderWink Layers, WonderWink Four-Stretch®, WonderFLEX™, WonderWORK®, WonderWink HP®, WonderWink NEXT®, WonderTECH®and W123™, represent a diverse and innovative retail offering, providing style, fit and features for every medical professional.
CID also has licensed and built well-known work wear and outdoor brand, Carhartt®, and lifestyle brand, Vera Bradley®, into successful scrubs brands by creating innovative products targeting specific market segments, the company says.
By leveraging CID’s brands, licenses and established network of retailers, Superior says it expects to greatly expand its line of uniforms for healthcare support personnel with more retail-focused uniform options and local, consumer-friendly service.
The purchase price of approximately $88.4 million for the transaction consists of approximately $84.4 million in cash, net of cash acquired, subject to adjustments, and the issuance of approximately 150,000 shares of Superior common stock. The transaction closed on May 2, 2018, and was structured as a stock purchase.
CID’s net sales for the year ended December 31, 2017, were $65.3 million. The transaction is expected to be accretive to Superior’s earnings per share and other operating results in 2018.
“We have always considered acquisitions as a vehicle to accelerate our growth and add to our bottom line,” says Michael Benstock, CEO of Superior. “Our acquisition of HPI years ago was a great example of our success at doing so in the uniform space. We believe that CID will be no exception, as it will enhance our current sales opportunities with our other uniform customers.”
CID will manage the Direct Healthcare channel for Superior and will continue to sell through the retail channels that have already been established and have contributed so greatly to CID’s success, according to the company.
“CID will be a wholly owned subsidiary of Superior and will continue to operate from its Coppell, Texas, headquarters,” says Benstock. “We are thrilled that CID’s very capable and experienced management team will be joining our team and will drive this portion of our healthcare business in the years ahead.”
“We have spent the past eight years building our business and our brands,” says H.P. Park, president of CID. “This acquisition will allow us to take CID to the next level as we leverage Superior’s relationships, sourcing, technology, distribution and financial resources.”
The day after Superior completed the transaction to acquire CID, the company’s shareholders voted at its annual meeting to approve changing its name from Superior Uniform Group to Superior Group of Companies (SGC) to better embody its position as a parent company of branding divisions.
“Our new name recognizes our rich history as ‘Superior’ and includes how diverse we’ve become as a family of companies all working toward brand enhancement,” Benstock says. “This name change and rebrand allows us to better identify our company and represents all of our branding solutions under the Superior Group of Companies name.”