Seymour Housewares Corp expects its acquisition of laundry-care interest company Magla Products Inc to boost its annual revenues to $100 million in 1995. The acquisition should give Seymour a market-share increase from below 30% to about 70% for the ironing board pad and cover segment. The Magla purchase included Magla’s ironing board covers, pads, laundry accessories and ironing boards, as well as its 270,000 sq ft facility in Mooresville, NC. Seymour looks forward to consolidating the two companies’ product lines.
On the heels of its acquisition of Magla Products Inc.’s laundrycare interests, Seymour Housewares Corp. begins 1995 a more formidable leader of the $200 million category.
The Dec. 9 purchase from Magla Products Inc.
formerly laundry care’s number-two vendor–greatly enhances Seymour’s market share. The company’s grip on the pad and cover segment jumps from under 30 percent to an estimated 70 percent and its hold on the ironing board segment from below 70 percent to approximately 75 percent.
With the assimilation of Magla, Seymour says it expects annual revenues to reach $100 million.
The purchase, for an undisclosed sum, included Magla’s replacement ironing board covers and pads, laundry accessories and fiber-board tabletop and ironing boards.
Management-owned Seymour, in conjunction with New York-based Chemical Venture Partners, also acquired Magla’s 270,000-square-foot printing, coating and packaging plant in Mooresville, N.C., and its 30,000-square-foot sewing facility in Reynosa, Mexico.
To hear Seymour tell it, there’s more than market share behind the deal. The purchase combines Seymour, one of two suppliers that produces its own boards in the United States, with Magla, a company recognized for its technologically advanced ironing board covers.
We look at it as compatibility
Seymour’s president and chief executive, Norman Proulx, says of the acquisition. “It is more of a function of bringing different strengths together. Magla is a low-cost producer of pads and covers, and has a capability Seymour has never enjoyed. We’ll be building strength onto strength.”
With two more plants at its disposal, Seymour’s customer service will also receive a boost, Proulx says. Having its own plant to print and coat covers, for instance, is expected to help the company meet demand when the contract printers of Seymour’s covers are on plant shutdown.
“The whole thing is about the future, being a capable supplier to the U.S. and international markets past the year 2000. It gives us the capacity to handle the business of the future,” Proulx adds.
The transaction enables Magla–a Chatham, N.J. company founded by Herbert Glatt and owned by members of his family–to focus on its growing cleaning and glove business, according to president Jordan Glatt.
“We felt it was time to refocus our energies in the glove business,” Glatt explains. “We see a tremendous amount of opportunity. We have a very high market share in the ironing board cover business, and we felt our future growth would be better where we had a lesser share in a larger market…. There comes a time when there’s just so much a salesman can pull out of his bag.”
Magla’s departure from the industry also lowers the number of family-owned domestic laundry-care manufacturers to one: Philadelphia-based Ironees.
Laundry care’s entrepreneurial ranks have fallen dramatically since the late ’80s, when vendors such as Seymour and St. Louisbased Design Trend hit the acquisition trail. Since 1986, Seymour alone has purchased pad-and-cover-maker Welmaid Products, foldaway-ironing-board-maker Millex, board-supplier ERC International and now Magla’s laundry-care business.
The consolidation of product lines will bring the best of both companies’ assortments to retail, Proulx adds: “They have terrific products we don’t have, and products that compete well with us. We’ll try to define the best of both product lines and attract a position.”