Any business aquisition can be a risky undertaking, but the successful possibilities often make such a move worth the gamble. That's what Aquascape Designs is discovering.
As one of the up-and-coming names in the developing field of water gardening, Aquascape Designs, Batavia, Ill., recently took a significant step toward increasing growth – by purchasing the key assets of Water Creations, Des Moines, Iowa. Both companies are manufacturers of consumer pond products.
“Aquascape Design's acquisition will help bring product expertise and supply chain efficiencies to the water gardening category – two important elements that are often missing,” explained Bob LaRue, green industry consultant and writer.
The aquisition is a shoo-in for success, as it combines market leaders in the professional and retail water gardening products marketplace, explained Greg Wittstock, founder and president of Aquascape Designs. “Strategically, this move allows Aquascape Designs, an established brand name among professional installers, to further expand its offerings into the retail marketplace with the acquired smaller entry and mid-level product lines,” he asserted.
The two companies have joined manufacturing forces. And, as Wittstock noted, this freshly formed combination of an industry-savvy sales force and Customer Care support team – coupled with existing distribution channels – will ensure the fused entity’s success as the biggest supplier of water gardening products to independent water garden retailers.
“This deal allows Nursery Pro to benefit from Aquascape’s financial backing, logistical support and water gardening management expertise,” Wittstock shared. “Retailers will now benefit from the luxury of being able to deal with a single manufacturer, from entry and mid-level product lines to the more advanced hobbyist offerings.”
Jack Luedtke, executive vice president, Aquascape Designs, is confident about the strategic fit of the two entities.
“About 90 percent of Aquascape’s $32 million in 2002 sales were to professional water feature installers, while approximately 90 percent of Water Creations’ $16 million in 2002 sales were to independent water garden retailers,” Luedtke expounded. “Aquascape Designs’ core strategy for 2003 was to further expand its current product line into the highly competitive, but fragmented, retail marketplace. With the acquisition of the Nursery Pro brand, the retail marketplace will be greatly broadened and accelerated.”
Wittstock is hopeful the union of the two lines will further the new-name company's success in the future.
“Our growth has come from concentrating on what our customers need to succeed,” he added. “That has meant superior products, a focused product mix, and a no back-order policy, combined with education, training, and marketing support. We plan on implementing all of these disciplines into the respected Nursery Pro line-up.”
The author is Assistant Editor - Internet for Lawn & Landscape magazine and can be reached at aanderson@lawnandlandscape.com.