Permatex Serious Over High Performance

HARTFORD, Conn.--For Permatex Inc., a developer, marketer and manufacturer of automotive repair and consumer products, the firm’s recent prediction of record revenues for the year is no laughing matter--the company has added the Nitrous Oxide Systems (NOS) fuel and fluid additive and treatment product line.

“The new NOS Automotive Chemicals will bring Permatex into the high performance market, giving us a new avenue for growth,” said Permatex Market Manager Steve Garland. “I’m looking forward to the new, exciting product opportunities that this will open up for the company.”

In addition to support of existing products, Permatex chemists will pursue new opportunities to use the NOS brand on other innovative formulas to enhance growth potential, Garland said.

“NOS is well respected in the high performance market for their Octane Booster, Fuel Injector Cleaner, Complete Fuel System Cleaner, and Cooling System Treatment products,” said Permatex President Pat Formica. “This acquisition and exclusive marketing agreement is great for Permatex and NOS. It gets Permatex into the high performance segment while giving NOS the marketing, sales and distribution infrastructure needed to grow the business.”

(The Octane Booster Racing Formula was developed to increase octane effect up to seven points. It is blended with MMT and performance-enhancing Powertane, along with Nitromethane and lubricants developed for high performance engines. The Street Formula, designed to increase octane effect by up to three points, also is blended with MMT and Powertane. The Engine Treatment & Oil Booster features Powerlube; the formula contains no PTFEs or chlorinated paraffins.)

The privately held company did not release specific figures, but Permatex Chairman and Chief Executive Officer Dean M. Willard predicted a record influx of business. “Permatex investors have been very pleased with our sales performance to date and are excited about prospects for 2001,” he said.

Formica attributes the company’s success to a combination of factors, including new-product introductions and line extensions, an acquisition and training clinics.

“The Permatex story is even more remarkable compared with the lackluster performance of the automotive aftermarket industry as a whole,” he said. Although the company has “substantially outperformed” the industry this year, Formica added that Permatex also has instituted stringent cost controls. “The challenges facing the automotive aftermarket will continue in 2001, and we are preparing Permatex for all eventualities,” he said. “We are very pleased with the cost savings generated by measures taken to date.”

Permatex introduced more than 30 new products during the first nine months of this year. The company added an entire line of functional fluids, including Permatex Fuel Injector & Carburetor Cleaner, Complete Fuel System Cleaner, Gas Treatment, Super Heavy Duty Brake Fluid, and OEM Power Steering Fluid.

In addition, the company’s adhesive lines has stuck with newly added products such as the DR. BOND Super Glue line and Ultra Bond adhesives in liquid and gel formulas. The company also introduced repair kits for professionals and do-it- yourselfers.

“Permatex Professional Repair Systems contain everything required for making professional-quality repairs to windshields, radiators, fuel tanks, plastic tanks and rearview mirrors,” he said.

Another new product, Permatex Bulb/Lamp & Electrical Connector Dielectric Grease, “ensures trouble-free operation and replacement while protecting electrical connections from moisture, salt, dirt and corrosion.”

Permatex has several new products in the works for 2001, including a line of epoxy adhesives, additional professional repair kits, a line of synthetic lubricants and a new Fast Orange skin care line.

“When Permatex was launched in August 1999, we went after highly talented marketing and R&D people. We also built a product research and development facility in Solon, Ohio. Those investments are now paying off in the form of superb new products and line extensions,” Formica said.

The company’s first acquisition was completed in April when it acquired No Touch North America, a producer of tire and wheel care products. As a result, Permatex now has a 10 percent share of the $100 million North American tire and wheel care market. “No Touch’s patented formula for its original one-step tire care product revolutionized the category in 1991,” he said.

“Permatex has a large and well-established sales force, tremendous distribution strength, and excellent relationships with our customers. By adding a high quality appearance line like No Touch to our portfolio of leading automotive brands, we increase our ability to serve their needs,” Formica said. The company is already shipping No Touch products.

In September, Permatex acquired worldwide marketing rights to Slik-Pak, a patented product used by truck drivers to lubricate the connecting device between the trailer and the tractor, called the “fifth wheel.” “Permatex sees excellent growth prospects for the brand and will be applying significant resources to it,” he said.

Permatex's mainstay products have enjoyed solid growth this year due in large part to the company’s training clinic program, according to Formica. More than 30,000 automotive technicians and vocational technical students have participated in the hour-long Permatex product seminars since the program was launched in June 1999. “The company has consistently experienced sales increases of featured Right Stuff Gasket Maker, Permatex Threadlockers and Fast Orange Hand Cleaner products in regions with heavy training clinic activity,” he said.

The clinics, which are primarily conducted by Permatex’s sales force, demonstrate to automotive technicians how Permatex products can save them time, decrease maintenance costs and increase repair reliability. Demand for the clinics has been so strong that Permatex plans to expand the program in 2001 and will include more products in the seminars, Formica said.

Permatex has established a Canadian operation over the past 15 months. The company also acquired Loctite’s former Mexican hardware business in August and nearly doubled existing sales in that market, he said. The Canadian and Mexican operations recently were relocated to new facilities in Toronto and Mexico City to improve customer service.

The company, which currently holds rights for the Permatex business in North America, is now in negotiations to acquire the global rights to the Permatex trademark and brands. Permatex was purchased from Loctite Corp. in August 1999, led by the business’ management team. “Virtually every employee of Permatex is a shareholder and is totally committed to a philosophy of providing the best products, best value and best service to our customers,” saidWillard.

For more information, contact www.permatex.com.

11/13/00