Foamworx Acquires Diversified Novelties
Dec. 7, 2010
Expanding its product line and customer base, supplier Foamworx (asi/54886) has acquired New Jersey-based Penmar/Diversified Novelties (asi/50061). Financial terms of the deal, which was finalized on December 2, were not released. "This will allow us to respond better to large volumes and also compete with China," said Heather Garner, CEO of Foamworx, in an interview yesterday with Counselor. "We'll be able to sell to other markets and to distributors who weren't on our radar before."
As part of the deal, Richard Langer, president of Diversified Novelties, will join Foamworx to serve in business development and sales. "He brings a varied line of products that we didn't have, especially vinyl seat cushions," said Garner. "They looked at us as a five-star supplier. We were approached by them in July to form a partnership." Garner expects Foamworx's current staff of 45 employees to increase slightly in the next few weeks. "There will be a ramp-up time," she says.
Langer, a 12-year industry veteran, believes the deal will benefit both companies, as well as customers. "Together, we'll be able to provide even better service and more creative products," he told Counselor. According to Langer, Diversified Novelties will move its operations to Foamworx's facility in Maine. "I think both sides are excited that we're combining companies," he said.
While declining to provide detailed revenue information, Garner said Foamworx has increased sales annually since the company was founded 15 years ago. She attributes recent gains to a commitment to marketing and investments in technology. "We've really done heavy marketing," she said. "While others pulled back, we spent more. With our wide format printer, we also offer four-color process, which puts us ahead of the competition."