DNL Holdings Acquires Schoepp, Irish Velour Furnishing Fabric Maker
April 17, 2000
Drinagh, Wexford, Ireland – Schoepp Velours of Ireland Ltd has been acquired by DNL Holdings, a private US group, for an undisclosed amount. The deal is likely to provide the Irish company with additional capital and enhanced access to the expanding American market.
Schoepp Velours employs around 130 people in the manufacture of face-to-face velvet and velour upholstery fabrics, with integrated operations including weaving, dyeing and finishing.
Jim Nehlson, currently based in Greensboro, N.C, U.S.A., and a principal shareholder in DNL Holdings, becomes chairman and chief executive of Schoepp Velours. He plans to move to Ireland in the near future and assume the role of managing director.
Nehlson began his textile career with Burlington Industries and then Culp Inc. before forming his own company, Gallery Fabrics. He went on to establish GSN Sales, which he still owns, and then DNL Holdings, a holding company involved in several businesses.
As a distributor of cloths to the U.S. furniture industry, Nehlson had been a buyer of Schoepp's fabrics and was familiar with the company's products and the capabilities of the Wexford facility and workforce. Schoepp's acting managing director Gerry Strange, formerly of Lister's, explained that there was a general shortage of velvet upholstery fabrics in the U.S. He said Nehlson's initial discussions had been concerned with securing the required volumes from Ireland. An offer to acquire a small stake in Schoepp Velours soon grew into a bid for 100 percent ownership.
DNL will add substantial new U.S. business to Schoepp's existing European customer base. This will help the Irish plant to achieve considerable economies of scale with the possibility of future expansion of the workforce to meet anticipated sales growth. Plans are being drawn up to increase the turnover of the Irish business to three times its current value, Strange revealed.
Nehlson said the acquisition – DNL's first venture into manufacture – would enable the U.S. group to directly develop designs and fabrics in response to customer needs. (DNL Holdings is also understood to be looking at other potential acquisitions.)
"We have immediate plans for the continuation of the European business and hopefully an increase in production now that we are bringing the U.S. market here for the first time," said Nehlson. "And we expect the U.S. business to grow very rapidly."
Strange added that although the U.S. market was about two years ahead of Europe in terms of demand for upholstery velvets, there was still a "very big demand in the U.K." and that the mill was currently busy. The new U.S. business would account for no more than 30 percent of production, he said. "As well as the boost of having a U.S. backer, more importantly for the first time in many years the company has a trade partner. Although Schoepp has only one or two serious competitors in Europe, the major focus will be to move the company to a sales orientation and away from a focus on production. The future is certainly brighter than it has been over the past 6-7 years," said Strange. With an annual capacity of around 3 million meters and potential for the operation of 70 looms, Schoepp Velours of Ireland was set up in 1979 by the long-established German Schoepp family firm to make velour fabrics for furnishings.
However, with fashion moving away from such fabrics, the Irish subsidiary went into examinership (administration) in July 1997. This followed several years of losses combined with quality problems that resulted in a number of claims against the company.
The firm was rescued by a consortium including Padraic White and the RS Group, a Dublin-based manufacturer of home improvement products, with the assistance of Enterprise Ireland and UBM Catharijne BV.
Over the past two years the previous management made considerable improvements to the plant's operation and the customer base was extended in the U.K. and Continental Europe.
The outgoing directors said the new owners with their strong textile experience and North American customers would be better positioned to take the Wexford business forward.
At Scoperta, Schoepp Velours of Ireland launched its new "Soft Options" collection consisting of "W" weave plain and semi-plain velvets. The company will also be exhibiting at Decosit later this year.
Schoepp Velours employs around 130 people in the manufacture of face-to-face velvet and velour upholstery fabrics, with integrated operations including weaving, dyeing and finishing.
Jim Nehlson, currently based in Greensboro, N.C, U.S.A., and a principal shareholder in DNL Holdings, becomes chairman and chief executive of Schoepp Velours. He plans to move to Ireland in the near future and assume the role of managing director.
Nehlson began his textile career with Burlington Industries and then Culp Inc. before forming his own company, Gallery Fabrics. He went on to establish GSN Sales, which he still owns, and then DNL Holdings, a holding company involved in several businesses.
As a distributor of cloths to the U.S. furniture industry, Nehlson had been a buyer of Schoepp's fabrics and was familiar with the company's products and the capabilities of the Wexford facility and workforce. Schoepp's acting managing director Gerry Strange, formerly of Lister's, explained that there was a general shortage of velvet upholstery fabrics in the U.S. He said Nehlson's initial discussions had been concerned with securing the required volumes from Ireland. An offer to acquire a small stake in Schoepp Velours soon grew into a bid for 100 percent ownership.
DNL will add substantial new U.S. business to Schoepp's existing European customer base. This will help the Irish plant to achieve considerable economies of scale with the possibility of future expansion of the workforce to meet anticipated sales growth. Plans are being drawn up to increase the turnover of the Irish business to three times its current value, Strange revealed.
Nehlson said the acquisition – DNL's first venture into manufacture – would enable the U.S. group to directly develop designs and fabrics in response to customer needs. (DNL Holdings is also understood to be looking at other potential acquisitions.)
"We have immediate plans for the continuation of the European business and hopefully an increase in production now that we are bringing the U.S. market here for the first time," said Nehlson. "And we expect the U.S. business to grow very rapidly."
Strange added that although the U.S. market was about two years ahead of Europe in terms of demand for upholstery velvets, there was still a "very big demand in the U.K." and that the mill was currently busy. The new U.S. business would account for no more than 30 percent of production, he said. "As well as the boost of having a U.S. backer, more importantly for the first time in many years the company has a trade partner. Although Schoepp has only one or two serious competitors in Europe, the major focus will be to move the company to a sales orientation and away from a focus on production. The future is certainly brighter than it has been over the past 6-7 years," said Strange. With an annual capacity of around 3 million meters and potential for the operation of 70 looms, Schoepp Velours of Ireland was set up in 1979 by the long-established German Schoepp family firm to make velour fabrics for furnishings.
However, with fashion moving away from such fabrics, the Irish subsidiary went into examinership (administration) in July 1997. This followed several years of losses combined with quality problems that resulted in a number of claims against the company.
The firm was rescued by a consortium including Padraic White and the RS Group, a Dublin-based manufacturer of home improvement products, with the assistance of Enterprise Ireland and UBM Catharijne BV.
Over the past two years the previous management made considerable improvements to the plant's operation and the customer base was extended in the U.K. and Continental Europe.
The outgoing directors said the new owners with their strong textile experience and North American customers would be better positioned to take the Wexford business forward.
At Scoperta, Schoepp Velours of Ireland launched its new "Soft Options" collection consisting of "W" weave plain and semi-plain velvets. The company will also be exhibiting at Decosit later this year.
