DLX Industries Acquires Pamcolite Brand
September 1, 2009
Looking to add polypropylene products to its offerings, DLX Industries (asi/48000) has acquired New York-based supplier Paulmay Company (asi/76520). Financial terms were not disclosed. Although the businesses will exist as separate companies, Paulmay's manufacturing, product development and customer service efforts have been moved to DLX's facility in Brooklyn, NY. "We've had a good working relationship with Paulmay for some time," says Mark Stewart, president of DLX. "When the opportunity became available for us to make this deal, we decided our collective distributors would be best served."
According to Stewart, five Paulmay employees, including three salespeople, will join DLX. Paulmay's president, Hal Deutschman, will serve as a special consultant for DLX, assisting in strategic planning. "We're definitely strengthening our sales staff," Stewart says.
In business since 1950, DLX Industries specializes in high-end vinyl, fabric and leather business products. Paulmay, which produces the Pamcolite brand, has manufactured lower-end vinyl products, writing instruments and other accessories. "Our lines have been similar but not the same," Stewart says. "With polypropylene, Paulmay had a product category that appealed to us."
According to Stewart, Paulmay annually generates sales of $1.5 million, while DLX produces sales of around $5 million. "Business has been steady of late after being spotty and up and down earlier in the year," Stewart says. "We're encouraged that sales will get stronger as the year goes on."