Tuesday, November 16, 1999
Pella to acquire Pease Industries
Firm expects few changes
BY MIKE BOYER
The Cincinnati Enquirer
Pease Industries Inc., a family-owned Fairfield door manufacturer since its founding in 1893, has agreed to be acquired by Pella Corp., the premium window manufacturer based in Pella, Iowa.
Terms of the deal, expected to close by Nov. 30, weren't disclosed, but a Pease spokeswoman said the acquisition reflects consolidation in the building products industry. Pease, which has revenues of more than $70 million, is one of Greater Cincinnati's largest privately held companies.
“Because of the consolidation in the door and window manufacturing industry, it's increasingly challenging for a stand-alone door company to compete,” said Sue Calardo, vice president of marketing. She said Pella and Pease have been talking about some type of partnership for several years.
David Pease Jr., 70, whose grandfather started the company as Pease Woodworking Co. in Cincinnati, said “the decision to sell Pease came after a thorough search for the best partner to assure the future growth of the company, the continuation of the Pease brand name and products, and the welfare of its employees and customers.”
The new ownership will mean few changes for Pease, which employs 275 at its Fair field headquarters and manufacturing plant and 100 at a plant in Denver. Pease will maintain its network of 3,500 dealers and an estimated 120 wholesale distributors.
The company will continue to operate under the Pease name as a division of Pella, which is also privately held. Mr. Pease, his son David Pease III, named president earlier this year, and Leonard Cavens, chief executive, will leave the company.
Randy Iles, formerly senior vice president of marketing and sales for Pella, has been named president of Pease.
Under David Pease Jr., the company has been an industry innovator. Mr. Pease invented the first residential steel door, called the “Ever-Strait” Door System in 1960, and the insulated steel door market, which now dominates the exterior market. More recently, the company introduced the industry's first carbon-fiber door.
This is Pella's third acquisition in the door market. In 1977, it acquired Cole Sewell Corp., a leading storm door and window maker, and last year, it acquired Viking Industries, a leading vinyl window and door maker.
“The Pease values and mission closely align with Pella's emphasis on quality and customer satisfaction,” said Gary Christensen, Pella president.
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