Norwood Halts Sale of Company

Norwood Promotional Products Holdings, Inc., a distributor of promotional products, has decided to take the company off the market after months of exploring offers from prospective buyers.

"We did entertain potential buyers for a number of months, but have decided to continue to focus on our customers and take the company off the market," spokesperson Allison Avin said last week at the ASI Show in Orlando.

The company also said that it planned to focus on maximizing profitability as a stand-alone business.

In early 2005, the company began to look at opportunities to maximize shareholder value, including a possible sale of Norwood's business or assets. It explored several sale opportunities during that time.

"The decision to conclude the sale process represents a renewed opportunity for Norwood to expand its growth strategy by increasing its focus on existing customers, new products and new markets," said interim CEO Frank Bellis, in a statement.

Bellis was appointed interim CEO after CEO Tom Roller left the company last month. He had been chief since June 2002.

In August 2005, Norwood retained Alix Partners to advise the company on implementing initiatives to improve supply chain logistics and other cost reduction initiatives.

"The decision to conclude the sale process represents a renewed opportunity for Norwood to expand its growth strategy by increasing its focus on existing customers, new products and new markets," said interim CEO Frank Bellis, in a statement.

At the ASI Show, Norwood has 10 new products displayed at the Advantages New Product Showcase including a desktop punching bag stress reliever and a Game Day Survival Kit that included a fanny pack, sunglasses, poncho, disposable camera, insect repellent, bandages, moist towellette, sunblock and Aloe Vera.

Norwood is ranked No. 2 on ASI's 2004 Top 40 Supplier List, with annual sales of $380 million.