Blowtherm USA Acquires Spray Booth and Compressor Divisions of DeVilbiss
Blowtherm USA, Inc., of Irving, Texas, announced April 6 that it has acquired DeVilbiss’ Spray Booth and Compressor Divisions. Both Blowtherm USA and the DeVilbiss Spray Booth and Compressor Divisions are leaders in the industrial and automotive refinishing markets. The combined resources and operations of Blowtherm USA, Inc. become Team Blowtherm.
According to Blowtherm USA’s president and CEO Carlos Pippa, "We are making history today. Blowtherm USA and DeVilbiss’ Spray Booth and Compressor Divisions have always been market leaders in North America. The new Team Blowtherm establishes us as a leading supplier. Our team synergy is tremendous because our business values are very compatible."
The relationship between DeVilbiss’ Spray Booth Division and Blowtherm is a long-standing one. From 1984 to 1993, DeVilbiss purchased spray booth cabins from Blowtherm, Italy, which were marketed under the name "Concept Cure."
The merged strength of the two companies means increasing manufacturing capacity with facilities in Irving, Texas and Barrie, Canada.
The two North American manufacturing facilities represent more than 220,000 square feet under roof. In addition, Team Blowtherm’s partner, Blowtherm Spa of Padova, Italy has 160,000 square feet dedicated to manufacturing, which affords Team Blowtherm a leading position worldwide.
As part of this merger, Team Blowtherm has acquired the DeVilbiss Tech Center in Atlanta. The Tech Center conducts spray booth research and development in addition to training for technicians and sales personnel and customer demonstrations.
According to Mr. Pippa, "The DeVilbiss Spray Booth Division’s significant inroads in working with paint manufacturers at the Tech Center will enrich Team Blowtherm’s contacts at the highest levels of the marketplace. The Tech Center will continue to anchor the research work with the paint manufacturers and will serve as the R&D center for new products introduced to the North American market by Team Blowtherm."
All the facilities will continue to operate at full strength.
Blowtherm USA, Inc. was formed in 1993 by Thermal Downdraft Systems and Blowtherm Spa of Italy. Blowtherm USA’s corporate headquarters and manufacturing facilities are based in Irving, Texas, and Blowtherm USA is equally owned by Blowtherm Spa and Mr. Carlos Pippa.
Blowtherm Spa is a family-owned company with headquarters in Padova, Italy. The company was founded in 1956 by Mr. Giovanni Peghin for the manufacturing of burners for domestic and industrial heating. Since the mid-70s, Blowtherm Spa has fabricated and marketed downdraft spray booth ovens to countries worldwide.
Steve Cox Appointed President and CEO of Standox North America
Standox North America, Inc. announced March 26, 1998 that Steve Cox has been appointed President and Chief Executive Officer of Standox North America. He will also join the company’s Board of Directors.
Cox has worked for Herberts GmbH, Standox North America’s parent company, for 18 years. His previous position was as Director of Business Development for Herberts Refinishes Division, based at Corporate Headquarters in Wuppertal, Germany.
"I am looking forward to the challenges and opportunities presented by this new position," Cox stated. "Standox is facing a new era in North America. We are committed to growing our presence in the marketplace and continuing to provide the exceptional products and services that our customers expect."
Mr. Cox replaces William F. Kregel, who served as President of the now defunct American Standox joint venture since its inception in 1991.
Standox North America is responsible for technical support, brand management and distribution for Standox automotive refinishes in the United States and Canada.
American Salvage Pool Association Files Suit Against CCC
The American Salvage Pool Association (ASPA) announced March 30 that it has filed a lawsuit against CCC Information Services, Inc. in U.S. District Court in Chicago for breach of contract, and for declaratory and injunctive relief.
ASPA President Alan Snook said, "We are extremely disturbed by CCC’s course of action. In addition, we are particularly disappointed that CCC has potentially entangled many of our members’ insurance customers in this suit."
"ASPA is confident that it will prevail in this action against CCC," Snook added.
Since 1988, ASPA and CCC have had a contract that permitted the delivery of the ASPA Salvage Value (ASV) product to the marketplace for use by the auto insurance industry. As part of that contract, CCC agreed not to compete with ASPA or its members throughout the duration of the contract, which ended in December 1997, for a period of five years thereafter. CCC also agreed to use data provided by ASPA members only in connection with the ASV product.
The claim filed by ASPA involves potentially large sums of money for what ASPA believes are unauthorized uses of proprietary data, and a request for enforcement of the non-compete covenant of the contract. The non-compete issue arises specifically in connection with CCC’s announcement of its intention to offer a service to broker the sale of salvaged vehicles on behalf of insurers.
"It is ASPA’s belief that CCC, in breach of the ASPA/CCC contract, may already have agreed with certain insurance companies to handle the disposition of those insurers’ auto salvage," said Snook. "As part of this litigation, ASPA and its attorneys intend to thoroughly investigate such agreements."
ASPA, which is headquartered in Glendale, Ariz., represents approximately 210 member businesses throughout the United States and Canada.
Binks Sames Opens New Technical Center in Japan
Binks Sames Corporation announced April 21 that it has opened a new Technical Sales Center in Toda, Japan, located just outside of Tokyo. With more than 22,000 square feet of space, the facility has been specifically designed to meet the needs of its automotive and industrial customers through a complete range of testing capabilities in both liquid and powder applications. With full conference, testing and repair facilities, the Center will serve as the base of the company’s operation in Japan and will house all of its main warehousing and sales divisions.
The goal of the Technical Center is to promote the company’s products through extensive training of Japanese automotive manufacturers, established industrial dealers and paint suppliers, while showcasing the full range of high-quality spray finishing products manufactured by the company worldwide.
ASA and SCRS Form Strategic Alliance
The Automotive Service Association (ASA) and the Society of Collision Repair Specialists, (SCRS) have announced a strategic alliance to pursue common goals and issues for its memberships. Both associations understand that most positions on issues relating to the collision repair industry are common to its membership. A joint effort on those common issues will strengthen the effect and benefits for collision shop owners across the nation.
Issues which have been discussed to date include:
- CAPA - quality and consistency issues
- Support of I-CAR’s UPCR
- Issues with ADP, CCC, and Mitchell regarding database improvements, enhancement, and fairness
- National Vehicle Salvage Titling
- CIECA - the need of uniform electronic standards that have not been accomplished
- Salvage Parts - usage, identify installation procedures and processes
- Industry position statement on use of Used/Salvage Air Bags
- Disclosure of Crash Parts
- Identify and resolve unfair claims practices by insurers
- Unfair usage of arbitrary paint and material caps
- Paint material compensation methodology - the non-compensation issue on body materials
- Blending and refinish issues.
ASA and SCRS have met three times to determine the commonality of interests on these issues and will be joining forces to enhance their benefits to its members on these issues. This is only an agreement to pursue and resolve important issues for the entire collision industry.
PPG Reports on Quarter
Raises Dividend- Sets Share Buy-Back
PPG Industries announced April 16 first quarter net income of $192 million, or $1.08 a share, on sales of $1.91 billion. As a result of higher volumes and effects of 1997 fourth quarter acquisitions, sales and per-share earnings were first-quarter records and net income improved significantly from a year ago.
First quarter 1997 net income for the maker of coatings, glass and chemicals was $166 million, or 91 cents a share, on sales of $1.78 billion.
Also today, PPG’s board of directors raised the quarterly dividend to 36 cents from 34 cents a share, payable June 12 to shareholders of record May 11, and authorized repurchase of up to 10 million shares.
PPG’s dividend was last increased, by one cent, with the December 1997 payment. This marks the 27th consecutive year of increased shareholder payments by PPG, which has paid dividends without interruption for 100 years.
Raymond W. LeBoeuf, board chairman and chief executive officer, said the dividend increase and share repurchase authorization "reflects our policy of increasing shareholder rewards as PPG’s growth accelerates.
"With the 10-million-share repurchase authorized in July 1996 essentially completed, the new authorization supplements our flexibility on options for PPG’s strong cash flow - which also include profitable acquisitions - consistent with our traditional financial discipline and long-term interests of shareholders," LeBoeuf added. "If appropriate acquisitions are not available at the right price, or internal investments are not required, cash flow will be applied to dividend increases, periodic share buy-backs or other beneficial uses."
LeBoeuf said, "higher volumes across all businesses and the positive effect of recent acquisitions contributed to higher sales and earnings for the quarter. New acquisitions will remain in our arsenal of strategies for increasing earnings more quickly and consistently. While we expand high- growth businesses, we will not be reluctant to reduce cyclicality by divesting those that don’t meet performance objectives, such as the planned sale of our European flat and automotive glass business announced last month."
CIC Materials Task Force Holds First Meeting
The CIC Materials Estimating Task Force, formed at the January 12-14 Gold Pin Meeting in Phoenix, AZ, held their first meeting in Cleveland, OH on March 24. The Materials Estimating Task Force’s goal is to identify a paint and materials estimating methodology that reflects the cost to the customer of paint and materials used in refinish operations to a level of accuracy acceptable for use in developing an overall repair estimate.
The meeting was attended by 17 people representing shops, insurers, information providers, jobbers, paint manufacturers and industry associations.
According to Charlie Baker, INSIGHT’s publisher and chair of the Task Force, "Broad-based agreement exists that a more fair and accurate system to determine materials usage and reimbursement can be developed."
Key to this effort is decoupling materials reimbursement rates from refinish labor times. Under the most prevalent method of computing materials charges total refinish labor hours are multiplied by an agreed upon materials reimbursement rate per hour. This system has come under attack by both collision repairers and insurers in recent years due to a wide spread perception of inaccuracy for the traditional method of estimating materials charges.
According to Baker, a preliminary report from the first meeting will be presented at the CIC Conference in Hawaii in April. Based upon discussion at this meeting and comments from industry members, further Task Force meetings will be scheduled. A final report on the Task Force’s findings and recommendations is planned for the fall of 1998.
Comments and information can be submitted to task force members by phone, to Charlie Baker at (800) 860-2744, by Fax at (440) 729-0927, or e-mail to cbaker@harborcom.net. Additional information is available on the Internet at www.collision-insight.com.
Republic Industries, Inc. Reports Earnings-Adds Insurance Replacement Car Rental Brand
Republic Industries, Inc. announced April 21 that for the three months ended March 31, 1998 net income increased 105 percent to $77.1 million, or seventeen cents per share, from $37.6 million, or nine cents per share for the same period in 1997.
Revenue for the three months ended March 31, 1998 increased 87 percent to $3.42 billion from $1.83 billion for the same period in 1997.
Operating income for the three months ended March 31, 1998 increased 161 percent to $124.1 million compared to $47.5 million for the same period in 1997.
Commenting on the Company’s performance in the first quarter of 1998, Steven R. Berrard, President and Co-CEO of Republic Industries, said, "Overall, this was an outstanding quarter for the company. We achieved significant growth in revenue and operating margins in our automotive retail, automotive rental and solid waste operations. Our automotive retail operations continue to experience the benefits of operating as one division. In addition, we are making significant strides in implementing our automotive retail districts in key markets across the United States. During the quarter, we added 76 automotive franchises and opened an additional AutoNation USA megastore, increasing our total to 26 megastores.
"In our automotive rental segment, we introduced the CarTemps USA brand name for its insurance replacement operations. Internationally, we rebranded our European automotive rental operations under the National and Alamo brand names. We are now in a unique position to leverage our National, Alamo and CarTemps USA brands in the business, leisure and insurance replacement market segments. Also, during the quarter, our solid waste operations acquired several companies to complement its existing operations. We are well on our way towards the successful execution of our business plan."
Have a comment? Send an E-mail to: rthrall@postoffice.ptd.net
Reprinted from the May 1998 Issue of Collision Repair Industry INSIGHT.
© 1998 Collision Repair Industry INSIGHT. All Rights Reserved
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