Troubled Pollenex Corp. has found a new home, with Rival Manufacturing Co. agreeing to acquire the Chicago-based small-appliance firm.
Kansas City, Mo.-based Rival, best known for its Crock-Pot, Monday said that it has signed a preliminary agreement to buy Pollenex’s assets for an undisclosed amount of cash, plus assumption of liabilities.
William Yager, vice president-finance and administration for publicly held Rival, said the firm hopes to complete the deal by April 30.
Seller is New York investment firm Odyssey Partners, which two years ago acquired Pollenex, a firm founded here in 1958.
Pollenex apparently had been hemorrhaging when Odyssey acquired it. And though Odyssey has a track record in turning around problem companies, reversing Pollenex’s fortunes has been difficult.
In recent months Odyssey has been seeking a buyer for Pollenex, insiders say.
Pollenex, whose products include air cleaners, massagers and water-filtration items, is said to be a marginal business at best, perhaps not profitable, though Odyssey has reduced operating costs and consolidated staffs and facilities.
Whereas Pollenex once manufactured its products in this country and Mexico, production in the last few years for the most part has shifted to Asia.
Yager said Pollenex’s current annual sales are about $28 million, which sources say amounts to perhaps a third of its volume three or five years ago when the company, once operated as Associated Mills, began its skid.
The fate of Pollenex’s headquarters at 165 N. Canal St. and its distribution center in Bedford Park couldn’t be determined, its new parent saying it would be evaluating the situation.
However, it seems likely that Pollenex’s headquarters will be closed. There may be a total staff of 80, including this unit and the distribution center.
Heading up Pollenex is Mark Ogan, a former Sunbeam Corp. executive who recently became president-chief executive. Ogan once headed Sunbeam-Oster, a unit that last year was relocated from a Milwaukee suburb to Schaumburg. Prior to joining Pollenex two months ago, Ogan had been assistant to Paul Kazarian, who was ousted as CEO of Sunbeam, a Providence, R.I.-based firm, in the aftermath of a management revolt.
At Pollenex, Ogan succeeded Elliott Millenson, whom Odyssey put in the CEO post in March 1992, only to have him resign and leave the company within a year.
Rival, founded in 1932, had sales of $163.5 million for its fiscal year ended June 30. Rival last September acquired Simer Pump, a Kansas City manufacturer of utility and sump pumps, total sales of $22 million, the new parent noting that these products have the same distribution (hardware stores) as its existing small appliances, also including skillets (an acquisition from Sunbeam a few years ago), electric can openers and heaters.
– Hiram Walker & Sons Ltd. in Walkerville, Ontario, tapped Minneapolis-based Campbell-Mithun-Esty KHBB for creative advertising of its Canadian Club brand in North America. C-M-E also was appointed to develop strategies for the brand in international markets. C-M-E KHBB’s office in London has had responsibility for Canadian Club’s advertising in the United Kingdom. C-M-E won out over Manhattan agency Messner Vetere Berger McNamee Schmetterer in this competition for a client whose $4 million U.S. advertising account had been with Eisaman, Johns & Laws-Chicago. Hudson Media Group, a media-buying service and sister company of Messner Vetere under the Euro RSCG banner, continues with media responsibility on Canadian Club as well as other spirits marketed by the distributor, Hiram Walker & Sons Inc. Media Buying Services in Toronto retains media buying of the Canadian Club brand in that country. Walker also is conducting a review of its Beefeater Gin, another client of Eisaman. Not affected this time are other Walker brands, including Kahlua and Irish Mist, handled by the Chicago agency.
Separately, DFM/Tatham, also a unit of Euro RSCG, cut seven people from its 31-person staff, partly reflecting what an agency official described as duplication with sister company Tatham Euro RSCG. That’s a 23 percent paring. DFM/Tatham recently moved into Tatham space at One Magnificent Mile and the agency is using Tatham’s media electronic capabilities.
– Charles F. Marcy, 42, a former Sara Lee Corp. executive who recently has been president of Kraft General Foods’ National Dairy Products Corp.’s subsidiary in Philadelphia, was named president of Quaker Oats Co.’s Golden Grain subsidiary in Pleasanton, Calif. A 1986 Quaker acquisition, Golden Grain is best known for its Rice-A-Roni and Noodle Roni brands, with total company sales of $308 million in fiscal 1992. As previously reported, KGF is closing National Dairy Products’ offices in Philadelphia.
On the move: Cindy Davis named VP, director of promotions at SafferCravit Advertising. . . . Susan J. Schroeder rejoined Foote, Cone & Belding Communications as manager of corporate communications. . . . Joanie Rosen promoted to an account director at Bayer Bess Vanderwarker.
Strictly Personal: Birthday greetings to James Stirling, William F. Merchant, Guy Weir, Avril Webster and Fred Strauss.
American Association of Advertising Agencies (4A) nominated Edward L. Wax, chairman and chief executive of Manhattan-based Saatchi & Saatchi Advertising Worldwide, as its new vice chairman. This means Wax will become chairman of the 4A at its 1994 annual meeting. Roy Bostock, chairman-CEO of D’Arcy Masius Benton & Bowles, moves up from 4A vice chairman to chairman at this year’s annual 4A convention April 21-24 in Laguna Niguel, Calif.
