MVP Group International, an overseas arm of Primacy Industries of Manipal Group, has inked an agreement to acquire Midwest-CBK, a leading candle, gift, holiday and home decor company, for an undisclosed consideration.
Midwest-CBK has over 100 years of experience in the giftware industry. It was earlier a division of Blyth Inc, a NYSE-listed company. Its key brands include household names such as Colonial Candle, Seasons of Cannon Falls and CBK.
The acquisition is expected to close by the middle of next month.
Primacy Industries is among the top global manufacturers of premium scented candles. It also owns Ekam Candles, one of the leaders in high quality, premium scented candles in India. Its U.S. arm MVP Group International, headquartered in Charleston, South Carolina, is the world's largest private label scented candle company.
Primacy Industries and its U.S. subsidiary together have a combined turnover of around $200 million with a workforce of around 1,600 people. Midwest-CBK, on the other, has sales turnover of around $105 million with a workforce of around 300 people.
Funding
According to Gautham Pai, CMD of Primacy Industries, the acquisition will be funded through internal accruals and bank funding. In a telephone conversation with this correspondent, Mr. Pai said Primacy had mostly been operating in the mass market segment. The Midwest-CBK buy would help it get into branded space in the U.S., he said. “Primacy-MVP and Midwest-CBK are an excellent strategic fit for each other. Through this strategic acquisition, Primacy will get distribution access to more than 30,000 premium independent stores and also entry into the high-end segment,” he said.
Primacy-MVP had competency in global sourcing, strategic marketing and branding initiatives, he said. Midwest-CBK, on the other hand, was known for its innovative design and development, he said.
Branded business
Mr. Pai said he was looking forward to grow the branded business by leveraging on the distribution channel of Midwest-CBK. He said the two companies had an ongoing relationship. In this context, he said Midwest-CBK was, in fact, making some products for Primacy's American subsidiary. He also indicated that the U.S. operations would be integrated over a period.
The combined group, he said, would be one of the world's largest players in the private label and branded scented candles, home décor items and giftware with turnover of more than $300 million and operations in the U.S., Europe, India, Vietnam, China and Hong Kong.
