Ariens Buys 3 Direct Marketing Brands From W.W. Grainger

Calling it part of a strategy to offset some of the seasonality inherent in its business, Ariens Co. said Monday it is acquiring three direct marketing brands from W.W. Grainger Inc.

The brands are Gempler's, Ben Meadows and AW Direct. All three brands market outdoor-related products including landscape and horticulture equipment, gear for fighting wildfires and tow truck equipment.

The brands will become part of Brillion-based Ariens on Jan. 1. Terms of the agreement were not disclosed, but, "the dollars are fairly significant," said Dan Ariens, CEO of Ariens and the fourth generation of the family to lead the company. "It adds a big new revenue base to our business."

Grainger said in a statement that the three brands total had estimated revenue of $90 million in 2013.

The three brands will help smooth Arien's revenue, which is skewed heavily toward fall and winter when sales of its snow blowers spike.

"When we look at their revenues over quarters they are much more level," Ariens said.

Ariens will add 250 new employees total at an office in Madison and a distribution site in Janesville as a result of the transaction, putting its total employment at about 2,300.

The company has been seeking an acquisition as a means to diversify its portfolio of businesses, Ariens said.

"We've been looking for a couple of years to find something that fits like this," Ariens said.

Ariens operates in the outdoor power equipment manufacturing as well as distribution segments in consumer and professional markets. The company's brands include Sno-Thro snow blowers; Countax and Westwood lawn tractors; and Gravely and Parker commercial equipment for the landscape management, facilities maintenance and sports field sectors. Ariens' affiliates, Stens Corp., J Thomas and Ariens Pty Ltd. in Australia, supply replacement parts to the outdoor power equipment industry.

"As we grow the distribution side of the business, these companies represent strong niche segments that fit nicely with our current portfolio of outdoor brands," the company said in a statement.

The acquisition is "another way to talk to the same customer with a different set of products," Ariens said.

Ariens will be taking over leased space in Madison as well as leasing space in the Janesville distribution center from Grainger, said Ariens spokeswoman Ann Stilp, in an email.

Ariens will operate the acquired brands along with Stens and J. Thomas as part of a newly formed specialty brands group.

The location of the businesses Ariens is acquiring played a role in the agreement, Dan Ariens said.

"We want to invest in Wisconsin wherever we can," he added. "We see opportunity here."

Ariens was established in 1933.

W.W. Grainger Inc., is based in Lake Forest, Ill., and had 2012 sales of $9 billion. The company is a business-to-business distributor of products used to maintain, repair or operate facilities.

Joe Taschler       www.jsonline.com  

Dixie Chopper Says Will Call Back Laid Off Workers By Early 2014

FILLMORE – November 18 -- Reluctantly, Dixie Chopper has temporarily laid off some of its employees as of Monday.

"The decision was not an easy decision but it was necessary for the continued success of the company," Chief Financial Officer (CFO) Bradley M. Craig said in a prepared statement provided to the Banner Graphic.

"The doors at Dixie Chopper are open and will remain open," he added.

Dixie Chopper has every intention of calling back as many of the affected employees during the beginning of 2014, company officials said

Specific numbers laid off were not disclosed.

The layoffs have come as the Dixie Chopper management team, which was put in place back in June, is reorganizing the company "to ensure a strong financial position in the marketplace, optimal production levels, reduced overhead costs, and a streamlined shipping process."

The new management team is composed of company founder Art Evans as chairman of the board, Wes Evans as president and chief executive officer (CEO), Jeff Haltom as vice president, Bradley Craig as CFO and Greg Fernandez as vice president of administration.

Company founder Art Evans, who built the first of Dixie Chopper's zero-turning-radius lawnmowers in an old dairy barn on his parents' property north of Fillmore in 1980, is delighted to let everyone know that the "city slickers are out of town" and that the company is "getting back to its roots."

Those roots run deep locally and include producing commercial and residential zero-turn mowers designed to outlast the competition.

To date, every Dixie Chopper mower ever built has been assembled in Putnam County -- either at the longtime factory outside Fillmore or for a short time in the former Mallory plant in Greencastle that was razed in April 2011, two years after production was transferred back to Fillmore from that facility.

Meanwhile, in related news, Dixie Chopper has announced the release of a new stand-on mower, The Stryker, which was recently unveiled at the Green Industry Expo (GIE) show in Louisville, Ky.

The Stryker stand-on received a lot of attention for its durability and state-of-the-"Art" handling.

Dixie Chopper plans to begin production on The Stryker stand-on in early spring as the homegrown Putnam County company focuses on continuing to bring new, innovative ideas to the marketplace.

www.bannergraphic.com     

GE Capital Survey Says Successful Selling Season Leads to Positive Sentiment in Lawn and Garden Industry

November 18 -- Lawn and garden industry participants are inclined to stock up on new low-cost models based on a positive summer selling season, according to survey results released today by GE Capital, Commercial Distribution Finance (CDF).

Fifty-four percent of industry participants said the popularity of lower-cost models will have the largest impact on sales this year, compared to 43 percent last year. One quarter said reduced levels of inventory will impact sales, down one percentage point from last year. Only seven percent pointed to long production lead times impacting sales, down from 20 percent.

“Pent-up demand for machines may have driven both consumer and commercial sales this year,” said Michael Horak, commercial leader of CDF’s outdoor products group. “Dealers have told us they feel good about the recent selling season and, based on current conditions, they’re planning to order more new equipment for next year.”

In fact, nearly half (49 percent) of respondents said this is a good time to consider re-stocking, up from 40 percent last year. About one-third (34 percent) had mixed feelings, down from 40 percent.

Respondents were generally optimistic about sales trends next year, as well. Thirty-eight percent said their sales would grow 5-10 percent; 23 percent said 10-15 percent; and 23 percent said 15 percent or more.

“From the inventory financing point of view, we’ve seen strong liquidations and ‘outstandings’ have been reduced to levels equivalent to this time last year,” Horak added. “At the same time, inventory turns have increased to a very healthy level.”

The lawn and garden industry survey was conducted Oct. 23–25. The 164 respondents were composed of retailers and dealers (27 percent); manufacturers (23 percent); distributors (15 percent); and other industry participants (35 percent).

For more than 20 years, CDF has played an important role in the green industry. Inventory financing, also known as floorplan financing, enables dealers to stock, market and sell lawn care products. Manufacturers generally benefit from enhanced product flow and increased sales opportunities, while dealers can obtain improved credit availability and terms.

To learn more about the ways CDF helps customers manage their inventory and access exclusive industry intelligence, dealers can speak with a CDF representative by calling 800-451-5944 or visiting the web site: http://www.gecdf.com/home.

About GE Capital, Commercial Distribution Finance

GE Capital, Commercial Distribution Finance provided nearly $31 billion in financing for more than 33,000 dealers and 2,000 distributors and manufacturers in the U.S. and Canada in 2012. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit www.gecdf.com/ or follow company news via Twitter (www.twitter.com/GEInventoryFin