PostalAnnex Makes Franchise Hay With Sunshine Pack and Ship
Posted on: 13/09/2006
PostalAnnex+ makes hay while the sun shines - acquires franchise system of Florida-Based Sunshine Pack & Ship.
“Make hay while the sun shines" is an old saying. It means get busy and accomplish things while it's daylight.
Management at San Diego-based PostalAnnex+, a pioneer in the business services industry, understands the value of acting on an opportunity, especially one that increases market share through an acquisition of another company's operations.
The firm has acquired the franchise system of Florida-based Sunshine Pack & Ship USA, Inc. which has locations in 11 states, primarily in the Southeast and Midwest areas of the country. PostalAnnex+, with locations in 21 states, has little overlap in Sunshine's existing markets.
"Sunshine Pack & Ship is a well-run, successful enterprise," emphasized Patrick Edd, president and CFO of PostalAnnex+. "We are excited about welcoming Sunshine's store owners into our network."
"This is a good match operationally as well," said Jack Lentz, founder and CEO of PostalAnnex+. "We each add value to the other. Sunshine brings to the table packing and crating services for industrial customers, and Postal Annex adds a variety of resources, materials and experience from serving retail customers for over 20 years."
Sunshine Pack & Ship was started by Barbara and Doug Roper in Bradenton, Florida, as a traditional mail and parcel center. They soon discovered a niche not being met by anyone else's operation -- the special handling, crating and shipping of large and/or valuable items sent via van lines or freight carriers, both domestically and internationally.
"We did not invent the hub-and-spoke transportation model, but I can say we are the first to introduce it into our industry," said Doug Roper, president and CEO of Sunshine Pack & Ship.
Edd said there is much to learn about the large-freight feature of Sunshine's business. "We both expertly service the under-150-pound package industry, but Sunshine takes the heavy- and large-shipment business to a new level. Shipments ranging from 150 to 1500 pounds are a very fragmented part of the shipping industry, and we believe Sunshine's expertise in this area will help develop new opportunities for PostalAnnex+ stores. By locating these large-shipment centers in industrial parks, Sunshine has become the shipping department for nearby manufacturers and other businesses."
The Sunshine stores will keep their name while the PostalAnnex+ brand is introduced through marketing materials such as posters, window stickers and counter cards.
"We are looking forward to providing excellent support for our new franchisees," added Steve Goble, PostalAnnex+ director of marketing communications. "We know the Sunshine owners are going to be impressed by the quality and depth of our organization's ability to help them in their business."
Which name future stores operate under will be decided on a case-by-case basis. "This will be our first experience operating a multi-brand franchise system," commented Edd. "They will be PostalAnnex+ franchisees, but we will own both names and will decide which name to use depending on proximity to other Sunshine locations."
He added that Sunshine's area developers will continue their advance development activities for the company.
Since becoming president of PostalAnnex+ in September 2004, Edd has focused on growth, increasing the pace of new store development and repurchasing regional franchises in San Diego, Riverside/San Bernardino, and Portland. This new acquisition supports the firm's long-term growth plan to have 400 PostalAnnex+ stores by the end of the 2006-2007 fiscal year.
"With the addition of the 21 locations and four area franchises of Sunshine Pack & Ship, our total number of franchisees now approaches 350," said Edd.
Both firms are privately owned. No purchase price was disclosed. PostalAnnex+, founded by Lentz in 1985 and headquartered in San Diego, is a one-stop support center for packaging, shipping, postal and office supply needs. Sunshine Pack & Ship was founded in 1996 and franchised since 2002.
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