Sunscope Acquires Premium Shapes
August 4, 2009
Looking to aggressively expand its production, Counselor Top 40 supplier Sunscope (asi/90075) has acquired New Jersey-based Premium Shapes (asi/79387). Financial terms were not disclosed. The deal, which was finalized last week, formally makes Premium Shapes a subsidiary of Sunscope but the companies will keep separate ASI numbers.
"We are very excited about this acquisition because it helps us in a number of ways," says Sunscope COO Dilip Bhavnani. "Our sales dropped quite a bit last year because of the pharma market, but we have reorganized ourselves and during the last six to eight weeks there has been a revitalization."
According to the agreement, Premium Shapes will continue its sales operations in New Jersey, while its products will be manufactured in Brooklyn, NY and at the Sunscope facility in Commerce, CA. Premium Shapes produces a variety of items including rulers, key chains, bookmarks, luggage tags, magnetic clips and coasters. Brian Seltzer, Randy Seltzer and Matt Dancsecs, all leading executives at the company, will continue with the business as partners. Additionally, there will be no layoffs because of the transition. "We are very excited about our merger with Sunscope," said Randy Seltzer, founder of Premium Shapes, in a statement. "With our creativity and Sunscope's backing, the realm of new opportunities and possibilities is almost endless."
Sales at Sunscope fell from $117.4 million in 2007 to $88.5 million in 2008, a drop of 25%. However, Bhavnani sees an uptick in business now. "Whether it's the industry or just us getting out to new clients, it's been good," he says. "I have nothing but high hopes." Bhavnani also says that additional acquisitions are likely in the near future.