|
LEICESTER, New York, June 29, 1998 – CPAC, Inc.
(Nasdaq NNM: CPAK) today announced that it has signed an amended license agreement with
Enesco Group, Inc. (formerly Stanhome Inc.). The amendment grants CPAC permanent ownership
of the Stanley Home Products name at the end of the contract in 2010, and fixes the annual
royalty rate at 3%. In January 1995, CPAC entered into the license agreement with Stanhome
for the trademarks and formulas of Stanley Home Products’ cleaning and personal care
products business in the U.S., Puerto Rico, and Canada. Stanley is headquartered in
Easthampton, Massachusetts. The products are manufactured at CPAC’s Fuller Brush
subsidiary in Great Bend, Kansas.
According to Thomas N. Hendrickson, CPAC, Inc. Chief
Executive Officer, "This amended agreement allows us to develop long-term brand
strategies and growth opportunities using the Stanley Home Products name. The financial
benefit of freezing the royalty rate at 3% will be significant. If we exceed targeted
sales levels this rate can drop as low as 2%. We have implemented marketing and recruiting
strategies in our ongoing efforts to aggressively grow the Stanley direct selling
business."
Mr. Hendrickson continued, "Our original ‘Vision
2000’ strategy was to diversify into a new line of specialty chemicals that would
exceed 50% of CPAC’s total sales by the year 2000. We accomplished that in late 1994
by acquiring The Fuller Brush Company in Great Bend, Kansas." Shortly thereafter CPAC
signed the original license agreement to take over the domestic operations of Stanley Home
Products. "This move was designed to strengthen our new position in the cleaning and
personal care market, reinforce our direct selling business, and drive additional
manufacturing volume through our underutilized Fuller Brush facility," he said.
"We are excited about the growth opportunities for
the independent Stanley customer representatives nationwide," said Mr. Hendrickson.
"For example, later this summer we will present a new line of personal care products
under the Stanley Home Products brand, which will provide unlimited line extension
opportunities. Other new products and programs will be aimed at the Hispanic and Asian
American markets, two of the fastest growing consumer groups in the personal care
market."
Founded in 1969, CPAC, Inc. owns The Fuller Brush Company
in Great Bend, Kansas, as well as five imaging chemical facilities in the U.S. and Europe.
In July 1997, the Company acquired a portion of IVAX Industries with $25 million in sales,
and formed the Cleaning Technologies Group as a division of Fuller Brush. CPAC has over
250 registered trademarks for chemical and non-chemical products in the cleaning and
personal care industry and imaging market. Shares are traded over the Nasdaq National
Market System under the ticker symbol "CPAK." Additional information is
available on the Company's website (www.cpac-fuller.com).
Except for the historical matters contained herein,
statements in this press release are forward looking and are made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned
that forward looking statements involve risks and uncertainties which may affect CPAC's
business and prospects, including economic, competitive, governmental, technological, and
other factors discussed in CPAC's filings with the Securities and Exchange Commission.
###
|
