Kelly-Moore Paints
 | |
| Company type | Private |
|---|---|
| Industry | Paint and coatings manufacturing Retail |
| Founded | 1946 |
| Founders |
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| Defunct | January 12, 2024 |
| Fate | Closed |
| Headquarters | , U.S. |
Key people |
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| Products |
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| Revenue |  US$400 million (2022)[1] |
Number of employees | 1200 (2022[1]) |
| Parent | Flacks Group |
| Website | kellymoore |
Kelly-Moore Paints was an American paint manufacturing company. Founded in 1946 by William Kelly and William Moore in San Carlos, California, it moved its headquarters from there to Irving, Texas, in 2023. Its manufacturing plant was located in Hurst, Texas.
As of October 2022[update], when it was acquired by investment firm Flacks Group, Kelly-Moore had 157 stores located in California, Texas, Oklahoma, and Nevada.[2] In January 2024, the company announced it was ceasing operations.
History
[edit]1946–1952: Founding
[edit]Kelly-Moore Paints was founded in 1946 by William Kelly and William Moore, former Glidden employees.[3]
1952–1984: Acquisition by William Moore and expansion
[edit]Moore bought out Kelly in 1952,[3] and for the next thirty years he was actively involved in every facet of the business.[4] He played an essential role in the evolution of production methods and the planning and designing of company-owned stores.[4]
In 1974, retail sales made up almost 25 percent of the total revenue. As a result of market shifts, that percentage would increase to 37 percent within a decade.[4] There was a rise in the number of homeowners who wanted to paint their own homes. Kelly-Moore maintained annual growth of 13 percent over the past decade.[4]
In 1984, Kelly-Moore had a revenue of $136 million and a profit of almost $11 million, when Moore announced retirement.[4]
1984–1998: Company under a new management
[edit]Joseph P. Cristiano took over as CEO of Kelly-Moore in January 1985, six months after William Moore retired.[4] He spent those months shadowing sales representatives to learn the ropes.[4]
In 1994, Kelly-Moore Paints expanded its presence in Alaska and Washington by acquiring Preservative Paint Co. of Seattle.[4] The purchase created a wholly owned subsidiary of Kelly-Moore Paints with two new retail locations in Alaska and fifteen new retail locations in Washington.[4]
In 1995, Kelly-Moore acquired K-M Universal, expanding its presence in the Southwest by adding a factory in Tempe, Arizona, and a number of retail outlets in the state of Arizona and the state of California.[4] A year later, Kelly-Moore expanded its new subsidiary by absorbing another acquisition, the paint division of Island Equipment Co., situated in Guam.[4]
1998–2022: ESOP
[edit]In 1998, Moore and his wife set up an ESOP, which provided both a retirement and stock ownership plan for eligible employees.[4]
In 1999, Kelly-Moore partnered with M.A. Bruder & Sons, a Pennsylvania-based company with a business model and customer base comparable to its own, in an effort to strengthen both firms' positions in the marketplace.[4] They were both able to serve national accounts since their regions did not overlap; M.A. Bruder handled projects on the East Coast, while Kelly-Moore handled those on the West Coast.[4] As a result of the collaboration, both businesses were included beside each other in the American Institute of Architects' MasterSpec Finishes directory, which is used by some 5,500 architectural and construction firms.[4]
In 2000, Diamond Vogel Paints and later Dunn-Edwards joined their alliance, which was known as Paints America.[4] In the same year, Kelly-Moore Paints acquired Ponderosa Paint Manufacturing.[4]
In January 2003, Herb R. Giffins replaced Cristiano as the new president and CEO of Kelly-Moore Paints.[4]
The company relocated its manufacturing from the San Francisco Bay Area to Hurst, Texas, in 2017.[5] In April 2022, it received the governor's Texas Environmental Excellence Award in the Pollution Prevention category.[6][7]
2022–2024: Acquisition by Flacks Group and closure
[edit]In September 2022, Kelly Moore Paints was acquired by Flacks Group, a Miami, Florida-based investment firm that holds more than $2 billion of total assets. Flacks Group bought the paint company's retailing, distributing and manufacturing units.[1][2] After the acquisition, Charles Gassenheimer, managing partner of the Flacks Group, became the CEO of Kelly-Moore Paints.[8] The company headquarters moved to Irving, Texas in 2023.[5]
The company was under financial pressure because of lawsuits related to its use of asbestos in cement and texturing materials until 1981. In January 2024, it ceased manufacturing and furloughed 700 employees.[9] On January 12, 2024, it announced it was ceasing operations except for fulfilment of existing orders.[10][11]
Management
[edit]- William Moore (until 1984)[4]
- Joseph P. Cristiano (1985–2003)[4]
- Herb R. Giffins[4]
- Steve DeVoe[12]
- Charles Gassenheimer[8]
References
[edit]- ^ a b c "Bay Area paint company with 1,200 workers is bought by investment firm". October 3, 2022.
- ^ a b Lopez, Sierra (October 1, 2022). "San Carlos' Kelly-Moore Paints change ownership". San Mateo Daily Journal.
- ^ a b Wildermuth, John (November 25, 2004). "William Moore -- paint store founder". San Francisco Chronicle (obituary).
- ^ a b c d e f g h i j k l m n o p q r s t u "Kelly-Moore Paint Company history".
- ^ a b McLean, Tessa (April 23, 2023). "Paint retailer Kelly Moore moving headquarters from Bay Area to Texas". Retrieved January 13, 2024.
- ^ "TCEQ announces Texas Environmental Excellence Award winners". Texas Commission on Environmental Quality.
- ^ "Kelly-Moore Paints Wins Environmental Excellence Award". Coatings World. May 10, 2022.
- ^ a b "Kelly-Moore Announces Leadership Changes". Business Wire. October 10, 2022.
- ^ "Paint company halts DFW factory operations, furloughs 700". WFAA. January 10, 2024 [January 9, 2024].
- ^ Avalos, George (January 12, 2024). "Kelly-Moore Paints halts operations, closes all stores". Mercury News.
- ^ Mejia-Hilario, Irving (January 12, 2024). "Paint retailer Kelly-Moore is going out of business days after laying off 700 workers". Dallas News.
- ^ Somerville, Heather (April 12, 2013). "Mercury News interview: Steve DeVoe, president and CEO, Kelly-Moore Paint". The Mercury News. Retrieved January 30, 2019.
Further reading
[edit]- Bjerklie, Steve, "Leading with Service", Modern Paint and Coatings, October 1, 2000, p. 40.
- Dill, Larry, "Paint Recycling: Kelly-Moore Is Supplying the Federal Government and Looking for Other Markets", Modern Paint and Coatings, January 1, 1995, p. 19.
- Neal, Roger, "Color It Profitable", Forbes, January 28, 1985, p. 76.
- Reitter, Chuck, "There Are No Ivory Towers in San Carlos, California", American Paint & Coatings Journal, February 3, 1986, p. 42.
- Valero, Greg, and Bill Schmitt, "Regional Paint Makers Link to Serve National Accounts", Chemical Week, May 17, 2000, p. 39.