Aurora bag manufacturer nearly doubles via acquisition

The couple are majority owners of Aurora-based Blackstone Investment Group Inc., which primarily makes and sells luggage and other types of bags through four operating companies.

On Jan. 1, they nearly doubled their $25 million outfit by buying Southern California-based Pacifica LTM, which makes and sells bags through five operating companies.

David Henderson wouldn’t disclose the acquisition price, but he expects the combined companies to pull in $45 million in revenues this year.

“It was a very strategically good move from both companies’ standpoints to combine operations because we had a lot of similar businesses,” said Greg Thomsen, Pacifica’s former owner, now a president under the Blackstone Investment Group banner. “It’s a real benefit and a real powerful combination.”

Divisional breakdown

Blackstone Investment Group includes Logo Solutions, Crew Outfitters and Luggage Works in Aurora and Carry Gear Solutions in Seattle. The Aurora companies produce and sell luggage primarily to airline crews, and the Seattle company designs and manufactures private-label bags for Nike, Lands’ End and Eddie Bauer.

Pacifica’s holdings included Mountainsmith, Youngstown Equipment, Detours, Body Glove Bags and 105 Meridien. Those companies make and sell work gloves, surfing equipment bags and outdoor backpacks and equipment.

“When you look at our company, we’re primarily what I would call a bag company,” Blackstone CEO Henderson said. “Each division focuses on a slightly different market segment, but virtually all of them make bags or something related to bags.”

The nine operating companies, which employ 121 combined, have offices in Missouri, Washington, California and Colorado. There are 40 employees in Aurora.

Blackstone Investment Group’s only stateside manufacturing facility is a 25,000-square-foot Luggage Works plant in Aurora that produces about 10,000 pieces of luggage annually. All other manufacturing is done in China.

Retirement fund

Henderson and his wife started Blackstone Investment Group about six years ago after he quickly got bored with retirement. He served as a certified public accountant with BKD LLP for 30 years before retiring in 2000.

The Hendersons bought Luggage Works for about $500,000 that same year, at a time when the company was mired in about $1 million of debt. Since then, the Aurora business has doubled its annual revenues to $4 million. David Henderson primarily credits improved marketing and focus on quality with the company’s turnaround.

The Hendersons bought their other companies between 2001 and 2003. Blackstone Investment Group now has 12 managers, each with an ownership stake.

While Henderson predicts there will be future acquisitions, he said none are in the pipeline.

“What we’re really trying to do is build a business that’s sustainable for the long term,” Henderson said. “We’re not trying to grow it big and then sell it to somebody else.”[[In-content Ad]]