Crescent-News.com - Sauder is prepared to assemble new business

By HEATHER BAUGHMAN

ARCHBOLD -- Hundreds of jobs are coming to Archbold.

After several weeks of fast-paced business talk, Kevin Sauder, president and CEO of Sauder Woodworking Inc., announced Monday that his company is acquiring key parts of O"Sullivan Industries Inc., one of Sauder Woodworking"s ready-to-assemble furniture competitors.

At least jobs will be created locally as Sauder prepares to move O"Sullivan"s Lamar, Mo., operation to Archbold over the next few months.

"We did not buy the company outright," Sauder said, "but after studying O"Sullivan"s business, we acquired selected portions we felt added value to Sauder"s operations and customer relationship."

The purchase agreement includes all of O"Sullivan"s intellectual property, the O"Sullivan name, the Coleman garage license, and select drawings, patents and raw materials.

Sauder explained that O"Sullivan Industries had been in financial trouble for the past year, moving in and out of bankruptcy. Sauder said that the Atlanta-based company, which had sales of $ million in 6, "most recently had been operated by a crisis management firm, but was still struggling." It eventually closed and its employees were sent home.

Curious about the company, Sauder had visited O"Sullivan over a month ago. "I was not interested in the plant or the equipment," he said, noting that he already had the necessary space and manufacturing equipment here in Archbold. "I was interested in the customer base," which includes companies such as Lowe"s, Staples, Big Lots and Wal-Mart.

With the bank handling the sale of the business, Sauder said his company was able to purchase the pieces which it was interested in, rather than the whole business.

Excited about keeping his new customer base happy (and unaffected by the transition), Sauder said he had the Lamar plant back up and running, even before the sale was made final.

"I purchased raw materials for production to start up again," he said. All the products flowing out of the Lamar plant are now owned by Sauder, but will continue to bear the O"Sullivan name.

Sauder said he wants the retailers to be affected as little as possible, which is why the O"Sullivan name will remain. Over time, though, he said the name may change to Sauder.

"Clearly, adding major portions of the customer base and product placements of this $ million company will significantly expand our sales, increase production at our Archbold facility and grow our market share," Sauder said.

According to Sauder, O"Sullivan Industries had more than 700 lines. "We are choosing the best 100 or so" to be continued, Sauder said, including the Coleman line.

While Sauder Woodworking and O"Sullivan Industries have rather similar products, Sauder said the Coleman line, a line of garage furniture that includes shelving and workbenches, will be new to Sauder"s.

Over the next three to five months, Sauder said his company will prepare to move the O"Sullivan products to Archbold, with job hiring (mostly factory workers) to begin in the near future.

"I believe our operation has the capacity to absorb the new business without additional major capital investments," Sauder said. "This arrangement will help us retain our position as a world-class domestic producer, while bringing more jobs to Archbold. We expect it to keep us very busy for a long time to come."

In the aftermath of two other area plant closings announced late last year and early this year -- ConAgra, which is expected to shut its doors later this year, leaving more than 350 people unemployed, and Cooper-Standard Automotive Inc., which will close in mid-8 and affect approximately employees -- Sauder said the new jobs at Sauder Woodworking will be a great benefit to the community.

"Local jobs are important," he said. "It is a thrill for me to announce a couple hundred new jobs. That"s a great thing."

Archbold Mayor Jim Wyse said, "The community of Archbold is extremely excited to finally have some positive news on the job front. As this community has learned first-hand the past 18 months, sometimes the joy of job creation in one community is offset by the great disappointment from the loss of jobs in another community.

"So, having been on the disappointed end the past few months, our joy is subdued as we realize that the new jobs coming to Archbold, Ohio, are the result of people in Lamar, Missouri, losing their jobs."