Pennzoil-Quaker State Company to Acquire Assets of Sagaz Industries, Inc.
11 January 2000
Pennzoil-Quaker State Company to Acquire Assets of Sagaz Industries, Inc.
HOUSTON, Jan. 11 -- Pennzoil-Quaker State Company
announced today that it has agreed to acquire the assets of Sagaz
Industries, Inc. Sagaz, based in Miami, Florida, is a leading manufacturer
and marketer of automobile seat covers and cushions in the United States and
Canada. The company also manufactures and markets automobile floor mats. The
transaction is expected to close before March 31, 2000.
"Sagaz is an excellent addition to our expanding line of top selling
automotive consumer products," said James J. Postl, president and chief
operating officer of Pennzoil-Quaker State Company. "With this acquisition,
Pennzoil-Quaker State Company will be the leader in the automotive seat cover
category. Our acquisition of Sagaz represents another step toward our vision
of becoming consumers' first choice for automotive products and services that
enhance the car and the driving experience."
Sagaz is an innovative and growing company with expected sales of
approximately $40 million in 2000. The seat cover and cushion marketer will
become part of Pennzoil-Quaker State Company's Axius(TM) business unit
headquartered in Moorpark, California. Axius(TM) is one of the fastest-
growing companies in the field of automobile accessories, which includes sun
protection, window tint film, steering wheel covers, auto organizers and
winter windshield covers. Axius(TM) has an extensive product portfolio, with
over 200 innovative auto accessories in these categories. Through creative
marketing, product innovation and category management Axius(TM) has
established a leading market share in the sun protection category it
pioneered.
"The addition of the Sagaz product line to our portfolio is a natural fit
that provides us with tremendous opportunities to create value through growth
and cost savings," said R. Richard Wrabel, president of Axius(TM). "Sagaz
competes in attractive markets and has the number one market share for seat
covers and cushions. Annual industry sales in the seat cover, seat cushion
and floor mat categories exceed $250 million, and the average annual sales
growth rate has been five percent over the past three years."
Axius plans to maintain the Sagaz manufacturing and distribution
facilities in Acuna, Mexico and Del Rio, Texas, as well as its recently
acquired automotive floor mat manufacturing and distribution facility in
Jackson, Mississippi.
Pennzoil-Quaker State Company is a leading worldwide automotive consumer
products company, marketing over 1,300 products with 20 leading brands in over
50 countries. The company markets Pennzoil(R) and Quaker State(R) brand motor
oils, the number one and number two selling motor oils in the United States.
Jiffy Lube, a wholly owned subsidiary of Pennzoil-Quaker State Company, is the
world's largest fast lube operator and franchiser. Pennzoil-Quaker State
Company also markets a complete line of automotive car care products including
Axius(TM) auto accessories, Blue Coral(R) and Classic(R) waxes and washes,
Black Magic(R) and Westley's(R) tire and wheel care products, Fix-A-Flat(R)
tire sealants, Medo(R) air fresheners, Rain-X(R) glass treatments, Gumout(R),
Snap(R) and The Outlaw(R) maintenance chemicals and Slick 50(R) engine
treatments. The company recently introduced Pennzoil Roadside(TM) Rescue(R)
Emergency Fuel Additive, a safe, conveniently packaged emergency fuel additive
that transports out-of-gas vehicles about 10 miles from the side of the road
to safety. Pennzoil Roadside(TM) Rescue(R) was named one of Business Week's
Best Products of 1999.