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Rebuilding a Brand
BY JOHN MESENBRINK Editor of PHC News
S
aving a major plumbing manu- facturer from financial trouble is one daunting task. To take it
on during one of the worst economic times in recent history takes some- thing short of a miracle. American Standard entered the
housing downturn with weak finan- cial results and facing an ownership change, but perhaps it was good tim- ing for the company. A new leader- ship direction was needed and Don Devine, president and CEO of Amer- ican Standard Brands, loves chal- lenges. Armed with his experience from U.S. Industries — the predeces- sor company to Jacuzzi Brands — Devine was “all in” when he started in 2006. Changes happened quickly. Ameri-
can Standard Companies, the parent company, announced a break-up in early 2007, which resulted in the Global Bath and Kitchen business being purchased by Bain Capital in July 2007. In December 2007, the Americas operations of the American Standard ’s Global Bath and Kitchen plumbing business in the U.S., Canada and Mexico was purchased by Sun Capital, leading to a triple merger with
end 2010, the now-profitable com- pany had expanded its stable of build- ing products, under well-respected brands such as American Standard, JADO, Porcher, Safety Tubs, Crane, Eljer, Fiat and Decorative Panels In- ternational. American Standard Brands now employs more than 5,000 people in the U.S., Canada and Mexico. “We are unique in our ability to
provide total residential and commer- cial project solutions, competing in markets from economy to luxury, with coordinated and innovative de- signs across multiple product cate- gories and price points,” Devine said. The company has achieved a lead-
ing position in the water efficient plumbing products market. Under Devine’s leadership, the company has invested substantial resources to ed- ucate the public on the benefits of water efficiency without sacrifice. “Our current partnership with The
Nature Conservancy helps educate consumers about fresh water conser- vation, while our company’s Respon- sible Bathroom Tour reaches plumbers, wholesalers, utilities and other stakeholders with products and demonstrations to help homes and businesses save water,” Devine said. On World Water Day 2011, Amer-
challenging youth to think holisti- cally and critically about global envi- ronmental concerns and solutions. On the trade side, the company also
•THE WHOLESALER® —APRIL 2011
‘Devine’ Intervention Leadership drives American Standard Brands’ philosophy: Style that works better
the industry and the economy. Mesenbrink: Tell us about your
initial challenges upon assuming leadership of the American Standard
The American Standard Seated Safety Shower is a seated shower built to meet the needs of many people, including the elderly and disabled. It is among several multi-generational solutions on display, including expanded options of last year's award-winning FunBath tub conversion kit, a range of accessible walk-in baths, multi-function hand showers, and furniture available in a range of convenient heights and configurations.
supports educational efforts. “American Standard was a founding
member of GreenPlumbers USA, sup- porting programs that provide contrac- tors with the training and education to differentiate themselves in a meaning- ful way in this competitive market- place,” Devine said. GreenPlumbers USA is a national training and accred- itation program assisting plumbers in creating sustainable communities, and providing consumers with water con- servation information. In January 2011, American Stan-
The EcoSilent whirlpools save 45% on energy and are 50% quieter than previous whirlpools. The pump and motor are water-cooled, eliminating the need for external ventilation while also transferring the motor’s heat into the whirlpool water, helping to keep it warm. The EcoSilent whirlpool pump and motor have been integrated into a single unit, which all but eliminates the noise and vibration found in conventional whirlpools.
Eljer and Crane Plumbing, both port- folio companies of Sun Capital. By early 2009, American Standard
reported that the merger integration had been successfully completed, creating a building products-focused project solutions company called American Standard Brands. At year-
ican Standard announced an exclu- sive sponsorship with the Green Education Foundation (GEF), a non- profit organization committed to cre- ating a sustainable future through education. GEF provides curriculum and resources to K-12 students and teachers worldwide with the goal of
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dard Brands completed a successful refinancing through a high-yield debt offering of $187.5 million in aggre- gate principal amount concurrent with a new $60-million asset-based lending facility. “The refinancing dramatically in-
creases our operating and financial flexibility,” Devine explained. “We are investing heavily in product inno- vation, the Internet, social media and in our supply chain. The company is well positioned for organic growth, as well as growth through complemen- tary and synergistic acquisitions.” Don Devine recently sat down with
John Mesenbrink, editor of PHC News (The Wholesaler’s sister publi- cation) and discussed the company,
business in North America. Devine: My first challenge was to
put the company on the right track as quickly as possible, while also preparing the company for sale. It was imperative to formulate a plan that returned the company to prof- itability, while making American Standard a more reliable partner for both consumers and the trade. Once the sale process was an-
nounced, the American Standard Global Bath and Kitchen Business at- tracted a great deal of attention, which resulted in ongoing manage- ment presentations to various inter- ested parties. The goal was to keep the sale process from disrupting our turnaround plan, which was focused on improving the company’s prod- ucts, cost structure and business sys- tems.
What we didn’t realize at the time
was that the sale process would result in the Americas plumbing business being purchased twice. The first was the sale of the global bath and kitchen plumbing business to Bain Capital. The second was a sale of the Ameri- cas to Sun Capital in December 2007, leading to a triple merger with Eljer and Crane Plumbing, both portfolio (Turn to Economy ... page 58.)
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