Atico Acquires Avonhome
July 9, 2007,
Avonhome, the country's fourth largest table linens supplier and fifth largest kitchen textiles supplier, has sold its operations and assets to Style Lab LLC, an affiliate of global sourcing and product development supply chain management company Atico International.
Avonhome was an 81-year-old home textiles supplier when it was acquired. Kouri, his brother, and a cousin were the third generation to be running the company, which was founded by his grandfather here.
Kouri and his relatives decided to sell the company to Style Lab as a means to grow the business. "We needed to [sell] in order to achieve the levels and goals we wanted at retail and expand our product base and distribution," he told HTT.
Avonhome has long occupied a spot on the HTT Top 5 list of table linens suppliers and more recently broke onto the HTT Top 5 kitchen textiles list. In 2006, the company reported $55 million in table linens sales and $13 million in kitchen textiles sales — the former having been flat from the prior year and the latter having seen a 14% drop from 2005.
The company had recently expanded its product offerings to include other home textiles, including beach towels, soft window coverings, bath towels, and accessories.
"Our expectation through this acquisition is the ability to grow our account base and product offering at retail," Kouri said. "We expect the growth we achieved to be faster than would have been allowed on our own."
Avonhome's relationship with Style Lab/Atico began "many years ago." Avonhome has long licensed its designs to Style Lab/Atico. Last year, when both parties renewed their partnership, new conversations developed.
"We started talking about having them acquire us rather than have them pay us for design consultation," Kouri explained.
At that time, Avonhome and Style Lab/Atico further cemented their relationship with an agreement to have Style Lab/Atico represent Avonhome as its selling agent for designs and products to Latin American companies.
"That proved successful, and we all clearly saw and understood the synergies that could benefit both companies through an acquisition," he said.
Aside from keeping Kouri aboard, Style Lab is also keeping intact the former Avonhome's New York team and offices — at 295 Fifth Ave. in suite 1712 — as well as its Los Angles executive post. In New York, the team includes: Chris Mooney, svp, merchandising and marketing; Mary Bonano, svp creative; Tom Costick, vp import director; Neil Simonson, vp sales; and Pam Oliva, design assistant. In Los Angeles, Rob Galperson will remain vp sales.
All financial and administrative operations will be performed at Style Lab's Ft. Lauderdale office at 501 S. Andrews Ave.In conjunction with the acquisition, Style Lab/Atico on June 1 opened its Style Lab Asia Ltd. division in Honk Kong. This facility is primarily responsible for factory qualification and compliance reviews, production scheduling, order processing, quality control, production/finished goods testing and inspection.