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Given Lakeland Industries, Inc. (NASDAQ:LAKE)’s announcement last Wednesday stating a new “Strategic Partnership” with LineDrive, a leading outsourced sales and marketing organization, it gives us a chance to highlight a part of a post-earnings April conversation with the company’s CEO Roger Shannon about expanding LAKE’s market presence.

The partnership can be certainly viewed as a foreshadowing of things to come in the near future regarding Lakeland’s M&A initiatives, with the move potentially putting them in a position to accelerate the effectiveness of new partnerships or acquisitions.

In the Skull Session with Maj Soueidan, Shannon talks about LAKE’s focus on opportunities for the company going forward.

When asked about diversifying beyond the fire sector, Roger explained that there are still opportunities within this area, particularly in terms of geography and customer base. He emphasized the strategic approach to acquisitions, focusing on smaller bolt-on deals that are suitable for straightforward integration into LAKE’s operations. He acknowledged that while the opportunities in the fire sector are not endless, there are still significant prospects in the near term.

Expanding on the M&A pipeline outside the current fire apparel (turnout) focus, he mentioned that LAKE is looking at acquisition opportunities, primarily in the chemical sector rather than disposables, since revenue associated with the disposable product line can be lumpy.

Roger also discussed the recent sale of Kimberly Clark’s personal protective equipment (PPE) safety business to Ansel, an Australian company primarily focused on gloves. He suggested that this sale might lead to market disruptions and customer delivery issues, which could present opportunities for LAKE to gain market share.

In all, LAKE is embarking on a targeted yet aggressive acquisition strategy, balancing between capitalizing on immediate opportunities in the fire sector and planning for potential openings in other predictable product categories.

LAKE is now poised to use LineDrive’s (new marketing partner) extensive network and market knowledge in enhancing distribution partnerships. This move correlates with Roger’s comments about focusing on geographical expansion and increasing visibility to broaden its market share.

Certainly, given Lakeland’s recent acquisition of LHD, it’s clear that one of LineDrive’s initial key objectives will be to fully leverage this acquisition, which has an attractive recurring business segment.

Shannon’s views from our Management Briefing on the company’s recent acquisition of LHD can be viewed below.

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