What is happening?
Anchor Industries Inc. (based in Evansville, IN) is acquiring Economy Tent International (based in Miami, FL) and will operate it as a wholly owned subsidiary. Hal Lapping, President of Economy Tent International will stay on to lead Economy's day to day operations.

Why is Anchor acquiring Economy Tent?
Anchor Industries has for decades been the leading U.S. manufacturer of tenting for the Special Events industry. This hard-won position was attained by offering the broadest selection of tent styles and sizes that have earned their legendary reputation for unparalleled quality through decades of service to demanding customers who need precisely tailored solutions and a level of partnership that is not only responsive but can actually improve the way they do business. Anchor has a corporate culture of continuous improvement and strives daily to live up to its motto of being "The Best Partner for Every Stage of Your Climb to the Peak of Success."

The unrelentingly brutal business climate of the last few years has brought focus to the needs of price conscious buyers in rental businesses that are just starting out or are engaged in low-margin fiercely price-competitive special events like fairs and festivals. Anchor believes that customer needs go beyond just tent features and specifications to an entire value proposition that encompasses the overall balance between features, quality, price, delivery, level of service and customizability. This customer segment values low cost, high quality and rapid delivery and has low requirements for a wide variety of configurations, complex customizations or high-touch personal service. Anchor made a strategic decision to enhance its ability to deliver this value proposition and analyzed whether to do it internally or to acquire a company with a track record of success at it.

Economy Tent International has built a sterling reputation delivering a targeted set of frame tents to the price conscious buyer that prizes efficiency in delivery and installation yet is unwilling to compromise on the quality of their tents. A rapidly expanding, highly satisfied customer base testified to a disciplined, focused, efficient and high quality operation that delivered on the value proposition and is a natural fit with Anchor. Anchor is fortunate that its success enabled a strategic move not normally seen in this industry – this is not an opportunistic purchase of a struggling competitor at a fire sale price in a bad economy to gain products or manufacturing capacity – Economy Tent's strength and success are driving factors for Anchor's selection. It is important to also note that while Economy Tent adds a separate value proposition to Anchor's offering, the fact that the value propositions overlap on uncompromising quality and integrity was an absolute requirement.

How will the acquisition be implemented?
Anchor's manufacturing operation is optimized for high variability in product size, style, materials and custom requirements. Economy Tent's manufacturing operation is streamlined for high efficiency production of a targeted set of standard frame tent configurations. Given the synergy of these capabilities with the respective value propositions, Anchor's and Economy Tent's operations will remain completely separate. The sales organizations of both companies will interact to ensure that every customer and prospect gets the best solution for their individual needs. Economy customers and prospects needing larger tents, different styles or custom features will be referred to the Anchor sales force for expert advice and a wide selection of tent options. Anchor customers and prospects will work with their Anchor rep to understand their needs and recommend the best solution. If the best solution is an Economy Tent product they will be referred to the capable and efficient hands of the Economy sales team.

How will the existing products and business strategies of the two companies be affected ?
Since this acquisition is intended to bring together two different value propositions that cover a broad spectrum of customer needs, there will be little to no change in products or product strategy for either company. Both companies will continue to provide existing products while developing new products targeting a combination of features, price point, configurations and customizability that are true to the respective value propositions and target customers' needs. The single exception is that an obsolescence plan for the Anchor Genie product line will be announced in the near future due to its overlap with the Economy Tent product line and value proposition. Ample time will be given for customer transition planning while replacement parts and tops will continue to be available.

How will this acquisition affect customers?
The strategic decision to keep the operations of the two companies separate ensures that customers will always have the ability to continue to buy the same products and work with the same people in the same way that they always have (with the small exception of Anchor Genie customers as noted previously). However customers of both companies now have expanded options and can choose from multiple value propositions that vary in features, configurations, price, level of service and customizability. Customers also benefit from the fact that both companies are now in an even better position to focus on the products and strategies that have satisfied customers and driven their success.

How will this acquisition affect employees?
An important benefit of the separate operations strategy is that there will be no loss of jobs at either company as a result of this acquisition. This move was driven by the desire to add value to customers, not to slash costs. The employees of both organizations provide a fundamental component of that value and the management teams of both companies are proud of and grateful for their contribution.