Kellermeyer Acquires Detroit-Based Bockstanz

Tough business climate ripens industry for further consolidation, Kellermeyer executive contends

For the past five years, Don Kellermeyer, president and CEO of Kellermeyer Co., Toledo, Ohio, has been looking to merge with a reliable and respected distributor in the Detroit area.

He finally found one in Bockstanz Brothers, and it would be difficult to find a company that’s been more reliable and respected in the jan/san industry than the one founded by Sid and Clarence Bockstanz in 1906. The company was one of the first distributors in Michigan to concentrate solely on cleaning products and was one of the founding members of the International Sanitary Supply Association (ISSA).

“We’re 96 years old and the Kellermeyer company goes back a ways too,” says Jack Bockstanz, who will remain with the company as a vice president. “Our two families have known each other for years and I think that both of us will benefit from the merger.”

Bockstanz will now have access to more depth in product and employee resources, and Kellermeyer gains a stronger foothold in the market, he adds. “The biggest thing for us is that Bockstanz will have more resources to go after the market in the Michigan area.”

Now that the merger has been finalized, Kellermeyer looks forward to continuing the customer-focused service that has made Bockstanz a a successful business.

“We’ve been involved in the metro Detroit market for a number of years, and this strengthens our position there,” says Kellermeyer of the merger. “About 80 percent of our product lines matched, so it was a really good fit.”

Since it has been known in Detroit for close to 100 years, Kellermeyer will continue to use the Bockstanz name.

Much of the Bockstanz operations will remain intact, according to Kellermeyer, whose main warehouse is located in Bowling Green, N.C. “Our main purchasing, shipping and receiving will continue to be done in Bowling Green, but Bockstanz carries a lot of advantages in the city of Detroit,” he says. “They have a very capable and seasoned sales team. Those are people who really know the area and have solid relationships with our customers.”

Kellermeyer believes that there will be more mergers in the months to come, as business owners in the jan/san industry attempt to overcome several obstacles. “I personally think that there is going to be more consolidation among distributors,” he says. “You look at all the things that business owners have to deal with: sky-rocketing insurance rates, new government regulations and shipping regulations — it’s difficult to find people to manage all those things.”

Although it does not have as lengthy a history as Bockstanz, Kellermeyer Co. has a rich tradition in the industry as well. The Kellermeyer family continues to hold majority ownership for the company that began in 1944. Since that time, Kellermeyer has grown in both profits and geography. An expanded customer base (upper management makes certain that each customer has less than 4 percent of the company’s total business) has enabled Kellermeyer to increase in geographical influence.

“My philosophy is that right now is a very good time for mergers,” he says. “Back in 1996 and 1997 we were doing a lot of mergers, but then the cost of purchasing a company really got inflated. Now I think it’s becoming a little more realistic.”

The Kellermeyer corporate headquarters will remain in Toledo, Ohio, although the company does business all over the country. Kellermeyer says that the company may not be done quite yet when it comes to other possible mergers.

“You’re always looking for growth opportunities,” he says. “You have to be willing to do the things that will make your business successful over the long haul.” There should be plenty to learn from a company that did just that for nearly 100 years.

—Alex Runner

JohnsonDiversey Closes Butcher’s Plant in Mass.

In a move triggered by two major acquisitions in less than two years, JohnsonDiversey recently announced that Butcher’s manufacturing plant in Marlborough, Mass., will be shut down by the end of the year.

The jan/san industry took notice when Johnson Wax Professional, Racine, Wisc., announced that it had acquired The Butcher Co., a leading manufacturer of floor care products headquartered in Marlborough, Mass., in September 2000.

Since that time, Johnson Wax has also acquired DiverseyLever and is now JohnsonDiversey.

“What it comes down to is that even though the Butcher acquisition was very big, the DiverseyLever acquisition was even bigger,” says JohnsonDiversey public relations director Mike Dries. “As a result, we’ve ended up with a lot of duplication.”

JohnsonDiversey will continue to use the Butcher name, but Butcher brand products will now be manufactured in Racine, Wis.

“This move should not affect jan/san distributors at all,” says Dries. “We’ll still be offering the same quality Butcher products.”

In all, 120 are employed at the Marlborough facility. The sales and marketing staff of 72 employees will be unaffected, but status of the 48 manufacturing employees was not known at press time.

ISSA Partners with ASTM

The International Sanitary Supply Association (ISSA) has joined with the American Society for Testing and Materials (ASTM) to present a symposium on floor maintenance and safety on October 14, 2002, the day before the ISSA/INTERCLEAN® 2002 convention begins in Las Vegas.

The ASTM, a not-for-profit organization, was founded in 1898 and has continued its vision of providing a global forum for the development and publication of voluntary consensus standards for materials, products, systems and services. More than 30,000 individuals from 100 nations are members of ASTM. This is the first time ISSA has partnered with ASTM for an educational symposium.

“This program is designed to provide an open environment where all aspects of current and future floor maintenance technologies can be discussed,” says Bill Balek, legislative director for the ISSA. “This symposium promises to address topics critical to proper floor maintenance.” Included in the topics of floor care are the following: the impact of floor traffic on maintenance procedures; an overview of technology in laymen’s terms; proper maintenance in varying environments; prevention and liability in slip and fall accidents; and slip resistance and portable slip testers.

The program is from 9 a.m. to 4:30 p.m. and is not included in registration for the ISSA Convention. The cost is $175; additional attendees from the same company receive a $25 discount. Interested participants may contact Tracy Novak by phone (800-225-4772) or by e-mail.

News Makers

Georgia-Pacific Corp. recently agreed to perform a number of restoration projects near the Fox River and Green Bay, Wisc. The projects are to compensate for polychlorinated biphenyls (PCB) contamination from the company’s papermaking operations.

The National Association of Wholesaler-Distributors (NAW) recently created a partnership with global insurer CNA to provide insurance benefits to its members.

ServiceMaster, Downers Grove, Ill., a national cleaning contractor, recently announced that plans to partner with Home Depot have been terminated.

MeadWestvaco, Stamford, Conn., a manufacturer of specialty chemicals and papers, recently announced a new partnership with Bioclimatic Inc., a leading manufacturer of air purification systems to create air quality applications for the industrial and commercial markets.

The Industrial Performance Group, Northfield, Ill., recently released a survey of more than 500 manufacturers and distributors. Of respondents, 81 percent said that they do not receive performance feedback information from their partners in the supply chain.

Wright State University, Dayton, Ohio, has published a study in a recent issue of the journal Annals of Allergy, Asthma and Immunology, confirming the effectiveness of washing materials to remove dust mites.

Mergers & Acquisitions

Intuit Inc., Mountain View, Calif., recently announced that it has signed a definitive agreement to acquire Eclipse, a leading provider of business management software solutions for wholesale distributors.

Novozymes, Salem, Va., recently announced the acquisition of InterBio, an industrial biotechnology products company based in the Houston area. InterBio will be integrated into Novozymes Biologicals, which was acquired Novozymes A/S in July 2001.

U.S. Industries, West Palm Beach, Fla., recently announced the sale of Selkirk HVAC Operations to Tinicum Capital Partners, L.P. for $40 million.

Cascades Inc., Kingsey Falls, Quebec, has signed an agreement with Brodrene Hartmann A/S, Copenhagen, to sell all of its retail egg carton activities in Canada and the United States, allowing the Danish company to become the second largest supplier of moulded-fiber egg cartons in North America.

Precision Paper Converters LLC, Kaukauna, Wis., has been purchased by a group of private investors. The same group has also bought the tissue converting assets of Fox Converting Inc. of Green Bay, Wis., and will move the tissue production lines to the Kaukauna facility.




POSTED ON: 8/1/2002