Globe Photos, Inc., the owner one of the world’s largest iconic pop culture image archives, has acquired the assets of Photo File, Inc., one of the nation’s leaders in licensed professional and collegiate sports photography.
“In addition to immediately increasing our revenue stream, this highly-synergistic acquisition significantly expands our collection of iconic sports photography and greatly strengthens our sales and production capabilities,” said Globe Photos CEO, Stuart Scheinman. “We expect to benefit from Photo File’s reputation for excellent customer service, as well as its strong ties to its professional and collegiate sports leagues and large retail customers. This will be important as Globe further develops Photo File’s relationships with top retail clients and distributors including Costco, Walmart, Target, Bed Bath and Beyond, USPS, Scheels and others.”
Photo File has current licenses with all the major US professional sports leagues and many colleges to produce and sell officially licensed sports prints, lithographs and sports memorabilia. Its physical assets include more than a million negatives and vintage sports prints, over 1,000 autographed lithographs and related memorabilia, and high-volume printing and packaging equipment.
“Given Photo File’s annualized revenues of approximately $7 million,” continued Scheinman, “this acquisition presents a tremendous opportunity to use Photo File’s existing sales and marketing organization to open new distribution channels for Globe Photos’ product lines and take advantage of the growing market demand for pop culture imagery and sports memorabilia.” Forbes recently reported the US sports memorabilia market now totals $5.4 billion.
The founder of Photo File, Charles Singer, will be retained as president of a newly-formed Photo File subsidiary, ensuring a seamless transition. “Globe is a perfect partner for Photo File, with highly complementary photographic assets, management, and operations,” commented Singer. “We have already identified several areas in sales, production and fulfillment where we can collaborate to increase revenues and improve efficiencies, as well as expand production capacity and improve margins with strategic outsourcing.”
Added Scheinman, “We see a great opportunity to grow Photo File’s online sales, which currently generate less than 10% of its revenue. Through an increased social media presence, improved SEO, and expanding partnerships with online retailers, we expect strong growth in higher margin online sales over the next few years.”