HomeStyles, Ellery form alliance to capitalize on synergies
Marvin Lazaro -- Home Textiles Today, May 7, 2001
MINEOLA, NY — Citing synergies in design, merchandising, sourcing and operational logistics, Ellery HomeStyles LLC announced the purchase of all of the assets of Ellery Products Manufacturing Co. Inc.
HomeStyles, based here, which opened its doors for business in 1999, manufactures blankets and throws for adults and children while the 75-year-old Ellery, based in New York, manufacturers soft window coverings.
The new company will operate under the blanket name Ellery HomeStyles LLC, and will bring its corporate offices together here. Distribution will also be done from one facility in Pine Bluff, NC. Negotiations began in late March, said Bruce Garfinkel, president, Ellery, and were finalized last week.
"We wanted to grow our business and this is a way to get additional funding to make us bigger," Garfinkel said. "This is a strategic alliance that will grow business and help both companies survive in the future."
"This is a very positive transaction for everybody," said Budd Goldman, ceo, HomeStyles and Ellery HomeStyles, about the purchase of Ellery, adding that the two companies were "gelling already."
Both Ellery and HomeStyles will retain their individual identities and continue to operate under their respective names. Ellery will also continue to showcase products at its space on 295 Fifth Avenue as will HomeStyles, which has space at 303 Fifth Avenue.
Despite the new corporate name and combination of corporate offices, Ellery and HomeStyles will continue to focus on their respective specialties. As time passes and the business expands, Goldman said, there is a possibility that coordinating products will be introduced. Both Goldman and Garfinkel also said there was a possibility that other companies would also be purchased to grow the business even further.
"Maybe we'll be getting into different avenues one day," Garfinkel said, "but at this point, we're just going to focus on the window, blanket and throw business."
Both companies currently place their products with mass merchant and specialty stores. Ellery sources most of its lineup from overseas while HomeStyles, which manufactures its products primarily in the U.S., will eventually follow Ellery's lead.
Garfinkel will remain in his role as president of Ellery, where he has been since 1978, while Andrew Canner will continue in that same role for HomeStyles.
"Bruce's knowledge of the home fashion marketplace, not only in curtains, but in design and fashion merchandising, is a benefit for us as a total home furnishings company," said Goldman.
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