Royal Industries Announces Acquisition
September 15, 2009
Looking to pursue growth opportunities, New York-based Royal Industries (asi/83770) has acquired the vinyl manufacturing division of Pencoa (asi/77040). Financial terms were not disclosed. The deal was discussed for roughly six weeks and finalized last Wednesday. "We wanted to diversify our line and add new products, especially some patented ones," says Ari Ruden, vice president of marketing for Royal. "We're grateful that our business has been trending positively and we want to continue it."
Pencoa, which employs about 50 workers, has supplied Royal with artwork and repeat order information to facilitate the transition. Known for its writing instruments, Pencoa now plans to concentrate on its core business. "With the decline of pharma orders, there has been a drop in vinyl business," says Rick Perlmutter, president of Pencoa. "Royal can fill the vinyl orders more efficiently and profitably. The deal allows us to continue to do what we do best."
Royal, which was established 55 years ago and today employs 180 people, produces card cases, portfolios, planners and other vinyl items. Ruden says Royal will consider other expansion possibilities and has not ruled out further acquisitions in the near future. "This is our first acquisition in about four years," Ruden says. "If there are opportunities for us to grow, we'll do it."