ONEIDA, N.Y., Jan. 27, 2009 (GLOBE NEWSWIRE) -- Oneida Ltd. today announced that it has reached an agreement to license its U.S. consumer flatware and dinnerware business to Robinson Home Products Inc., a leading distributor and marketer of consumer products.
The agreement ensures that Oneida's products will continue to be widely available to consumers through leading retailers while allowing Oneida to sharpen its strategic focus on its foodservice, e-commerce and international businesses, which are well positioned for growth.
James E. Joseph, president and chief executive officer of Oneida, said: "Robinson and Oneida have worked together successfully for more than 40 years, and we are very pleased to be expanding our relationship significantly with this deal. It matches the strength of Oneida's brand and the quality of its products with Robinson's exceptional distribution reach and relationships with major retailers. Oneida has a successful consumer business today, and this agreement will open the way for it to grow even faster and increase its market share."
Robert B. Skerker, third-generation CEO of Robinson, said: "Oneida is one of the most widely recognized and respected brands in the consumer marketplace, and we have been privileged to represent and work with the company since 1971. This agreement will increase the Oneida product lines we market and add significantly to the breadth of our consumer portfolio."
Under the terms of the multi-year agreement, Robinson will acquire the assets of Oneida's consumer wholesale division and distribute all Oneida products in the flatware, dinnerware, gadgets and cutlery categories in the U.S. consumer wholesale channel. Oneida and Robinson will share new-product design and showroom facilities, and Oneida will continue to provide distribution services, procurement and supply-chain systems during a transition period to ensure seamless service to suppliers and customers. The deal is believed to be one of the largest and longest licensing agreements ever in the consumer tabletop industry.
James J. Walsh, Robinson's President, added: "We are looking forward to integrating the Oneida tabletop categories and their key personnel to expand the retail presence of the Oneida consumer brand. This remarkable opportunity will allow us to fully coordinate and strengthen the Oneida brand with a talented group of sales and marketing professionals who will continue to support these efforts."
Oneida is a global leader in designing the dining experience, and a leading source of flatware, dinnerware, drink ware, cookware, kitchen tools and cutlery for both the consumer and food service industries worldwide. Oneida sells consumer products today through some of the nation's largest retailers, including Bed Bath & Beyond, JCPenney, Kohl's, Macy's, Target, and Walmart. Oneida's retail shelf space increased in the past year, despite a weakening retail environment.
The relationship between Oneida and Robinson dates back to the mid-1960s, when the two companies first forged a sales and technical cooperation agreement, followed in 1971 by Robinson licensing the Oneida brand for use on cutlery products until 1982. In 1996, the two companies entered into another licensing agreement for the Oneida name on kitchen tools, followed by another cutlery license in 2006. Through Robinson, Oneida has become the largest-selling brand in stainless kitchen tools, gadgets and barware in the U.S.
The licensing agreement with Robinson reflects a broader strategy by Oneida to expand its licensing programs in recent years as part of its successful revitalization strategy. As a result, Oneida today has successful licensing programs with Bradshaw International, Inc., McPherson's Consumer Products PTY Ltd., Anchor Hocking and Productos Inoxidables Para la Industria S.A. de C.V. covering certain product categories and sales channels in the U.S., Australian and Mexico markets.
"This agreement is further evidence of Oneida's transformation into a global company that is well positioned for future growth," added Andrew G. Church, Oneida's Chief Operating & Financial Officer. "Our partnership with Robinson simplifies our business model, further streamlines our operations, improves our cash flow and, most important, frees up capital to invest in high return businesses, such as global foodservice and Internet sales."
Oneida's global foodservice initiative is focused on the selling of Oneida's luxury brands (Sant' Andrea, Waterford, Wedgwood, Spiegelau, Schonwald) into the high end (five and six star) hotel and gaming market located in Latin America, Europe, Middle East and Asia. Oneida has established a sales, distribution and sourcing subsidiary in Guangzhou, China in order to serve this growing market.
Oneida's award winning website (www.oneida.com) is one of the most popular consumer housewares destinations on the Internet. The Oneida.com site was revamped in May 2006 to better serve customers and support its brand position. Since this time, online visits have increased dramatically and Oneida's e-commerce business volume has increased approximately 85%.
The transaction is subject to certain approvals and is expected to close by the end of March. Financial terms were not disclosed.
About Oneida
Incorporated in 1880, Oneida Ltd. is one of the world's largest design, sourcing and distribution companies for stainless steel and silver plated flatware for both the consumer and foodservice industries. In North America, it is the largest supplier of dinnerware to the foodservice industry. Oneida sells under a number of well recognized brands and trademarks: (r)ONEIDA, (r)SANT'ANDREA, (r)WATERFORD, (r)WEDGWOOD, (r)SCHONWALD, (r)NORITAKE, (r)JUILLIARD, (r)MICHELANGELO, (r)EASTON, (r)WM. A. ROGERS, (r)COMMUNITY, (r)DELCO, and (r)REGO. Additional information about Oneida can be found at www.oneida.com.
About Robinson
Robinson Home Products Inc., an employee-owned company, designs, develops and markets quality food preparation utensils and tools. Founded in 1921 as Robinson Knife Co., Robinson evolved from a manufacturer of cutlery, kitchen tools, scissors, and fine edged industrial components into an innovative developer and marketer of branded housewares products. Robinson's headquarters is located in Buffalo, New York and its top licensed and owned brands include Oneida(r), Rubbermaid(r), Sunbeam(r), Crock-Pot(r) Sink Things(r), Chip Clip(r), and Culinary Institute of America(r) Masters Collection(tm). Robinson has won numerous supplier awards.