Fey To Acquire Molenaar
Financial Terms Of Deal Not Disclosed
Minnesota-based Fey Promotional Products Group (asi/54040) has announced that it has signed a letter of intent with Wilson Tool International Inc., parent company of Molenaar LLC (asi/71980), to acquire the assets of Molenaar (Mi-Line). Financial terms of the deal, which is expected to close in June, were not disclosed. The Molenaar brand and product line will remain intact, and contact information and ordering processes will be unchanged.
"I'm very excited about the acquisition of Molenaar and its potential for our family business," said Mike Fey, vice president at Fey. "With both of our firms being Minnesota-based, we know each other very well."
Upon completion of the agreement, Molenaar's production will move to Fey's 3,000-square-foot facility in Edgerton, MN. Fey intends to speak with each of Molenaar's approximately 80 employees about potential employment opportunities going forward, according to Fey's director of marketing, Ron Williams. Fey executives expect the acquisition of Molenaar to increase their firm's decorating and manufacturing capabilities, while also providing a new product niche.
"The addition of injection molding brings a broad product line with no overlap to our current products of Fey-Line or Reflectix by Fey," Fey said. "Molenaar also expands the depth and breadth of our USA-made promotional products."
Molenaar's sales, Wilson says, have been "consistent" for roughly the last decade, while Fey's growth in recent years "has outpaced" that of the industry. Fey's acquisition of Molenaar expands its growth strategy, as it previously purchased Reflectix (asi/81233) in 2009.