ADCO Products Thrives After Covercraft Merger (2/5/2019)
Story by Ron Barger
Following the consummation of the merger between RV protective cover manufacturer ADCO Products with Covercraft Industries in December of 2016, ADCO officials reported that the company has enjoyed significant growth.
“As we finish our 25th month after the merger we have increased the size of our division by 30% and introduced multiple new product lines to increase growth,” said Morgan Ein, executive VP of sales and marketing for Covercraft Industries and general manager of its ADCO Products division. “We’ve kept all our key management in place on the ADCO side and we’ve been able to harness the infrastructure of this larger organization to better support our growth.”
Ein related that cross merchandising with the Covercraft products has also aided the expansion. “Cross merchandising with Covercraft is a really important point that we want to hit home with the RV dealers,” he said.
He said that of the 9 million RVs in North America, 65% are towables and require a tow vehicle, and the Covercraft brand currently ranks as the leading supplier of protection products for pickup trucks.
“This presents an enormous opportunity to cross merchandise the Covercraft assortment of vehicle protection products to RV owners,” said Ein, noting that the merger has also spurred growth with additional resources and distribution advantages for ADCO. “And the beautiful thing is that Keystone Automotive as well as Meyer, both major national RV distributors, now stock most of Covercraft’s products. So RV dealers who already have accounts with Keystone and Meyers already have the ability to order these products and open up the avenue for cross merchandising effortlessly.”
Adding to the strength of the merger, the two brands have a long history of producing protective covers for both the automotive and RV industries. Pauls Valley, Okla.-based Covercraft was founded 54 years ago and Valencia, Calif.-based ADCO boasts a 64-year history.
Ein noted that the two divisions will spend considerable efforts in 2019 to educate RV dealers and store managers about the various Covercraft products already easily available to them.
“Covercraft has allowed us to carry substantially more inventory. It’s also allowed us to move into a significantly larger distribution hub in Valencia that has shortened our delivery times as well," Ein stated, adding that during the 2019 NTP-STAG Expo in Nashville, Tenn. in January, ADCO and Covercraft showcased their products jointly.
Mark Korros, president of Covercraft, offered, "We are enthusiastic about the growth potential of ADCO Products and are committing significant resources to design, product development and inventory to help fuel the ADCO business. The opportunity to bring many of the Covercraft products into the RV market will help to further solidify ADCO's position as the RV market's industry leader.”
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