Mar 30 2010
Alpha Pro Tech, Ltd. (NYSE Amex: APT) a leading manufacturer of
products designed to protect people, products and environments,
including disposable protective apparel and building products, today
announced a strategic change in the Company's disposable protective
apparel distribution strategy.
The Critical Cover® disposable protective apparel brand and its
associated trade names, SureGrip™, AquaTrak®, ComforTech® and
Microbreathe™, are trademarks owned by Alpha Pro Tech and have been
manufactured by Alpha Pro Tech exclusively for VWR International, LLC
("VWR") since the early 1990s. Alpha Pro Tech has recently been informed
that VWR, which has always been Alpha Pro Tech's largest distributor of
disposable protective apparel, has decided to launch its own private
label line of disposable protective apparel, and has made a business
decision to transition away from selling Alpha Pro Tech's disposable
garments to their own brand of apparel. As a result of this decision,
Alpha Pro Tech will no longer supply VWR with Critical Cover®
proprietary shoe and boot apparel. To ensure that end customers have
access to our widely known and well-recognized Critical Cover® products,
Alpha Pro Tech has made these products available through a broader
distribution network. We anticipate that the balance of our Critical
Cover® apparel product line will be available through both the increased
distribution network and VWR.
Al Millar, President of Alpha Pro Tech commented, "We are disappointed
that it has come to this, but, having learned of VWR's decision to
launch a competing line of products, and based on the resulting change
in our relationship with VWR, we have no choice but to shift away from
VWR as the sole distributor of our Critical Cover® protective apparel
product line and to utilize a more diversified, broader, global
distribution strategy. We will be working closely with our distribution
partners to ensure continuity in our distribution channel to minimize
potential supply-chain interruptions."
Mr. Millar continued, "Shoe and boot covers account for approximately
50% of our apparel business and it is possible that our decision to not
supply these products to VWR could have an adverse affect on the
remainder of our relationship with them and on our business and
financial condition. However, we hope that we will have a continued
relationship with VWR for the balance of our product line, based on our
long history with them. Above all, we are committed to producing the
highest quality products and we have an obligation to our customers and
our shareholders to protect our brand."