Pro Towels Acquires Superior Towel
October 19, 2010
Gaining a production facility on the West coast, Pittsburgh-based Pro Towels Etc. (asi/79750) has acquired California-based competitor Superior Towel & Decorating (asi/90240), the companies have announced. Financial terms of the deal, which closed on Friday, were not released. “This acquisition reinforces our commitment to being the leader in the towel category,” said Kevin Nord, president of Pro Towels. “Customers will have access to better freight rates and increased production.”
A supplier in the ad specialty industry for the last 25 years, Superior will continue to serve as a contract decorator, becoming a division of Pro Towels. According to a spokesperson, all 45 Superior Towel employees will be retained through the acquisition, with the company’s founder, Robert Strem, being named an executive vice president. “We are looking forward to providing our customers with not only excellent service, but also a more extensive line of towels, and other products,” said Strem.
Pro Towels, which also operates a production facility in South Carolina, generated $8 million in sales in 2009, according to Nord, while Superior Towel & Decorating reported sales of $4 million. Nord expects the combined companies will produce $15 million in revenues next year. “We will be able to respond even more effectively to the constant and challenging demands of our customers,” he said.