Golden Applexx Acquires Pen Station Inc.
April 20, 2010
In an effort to expand its product line, California-based supplier Golden Applexx Company (asi/57655), maker of the StopNGo Line, has acquired writing instrument manufacturer Pen Station Inc. (formerly asi/76839) in a cash buyout. Financial terms of the deal were not disclosed, but Golden Applexx will not be assuming liabilities as part of the transaction. "We already have been working with them because they supply some of our products," says Jeffrey Lee, vice president of the StopNGo Line, speaking about Pen Station. "We've been involved in a lot of plastic products and products that are lower on the economic scale, but Pen Station has higher-value products. We feel like we'll be able to raise the bar on the value of our products now."
According to Lee, all Pen Station property, equipment and customer records will now be consolidated into the Applexx facility, which is just east of Los Angeles. A handful of Pen Station employees will also serve as consultants for Golden Applexx in the transition. Lee says the deal will lead to more Applexx jobs and a sales increase of up to 15% in 2010. "Last year there was a downturn," says Lee, who declined to report 2009 revenues to Counselor. "This year, we've had a 35% increase in sales. It's not any one product that's selling. It's been everything."
Established two decades ago, Pen Station manufactures metal, plastic, wooden and light-up pens. Founded in 1986, Golden Applexx employs 40 people, manufacturing items ranging from notepads to tote bags to air fresheners.