Hallmark Cards Inc. has sold its Cedar Products facility here to Goer Manufacturing Co. but will maintain its local operations and lease back 96,000 square feet of the plant.
Goer, based in Charleston Heights, S.C., will establish a new operation in the remaining area of its 216,000-square-foot building. Terms of the deal were not disclosed.The sale was announced Monday by officials from Goer, Hallmark, Utah Power & Light Co. and Pacific Power & Light Co. Economic development teams from both utilities helped arrange the deal.
"The professionalism of Pacific Power, Utah Power & Light and Hallmark, combined with the responsiveness of the Cedar City community itself really sealed the deal for us," Ernest Goer, president of Goer Manufacturing, said.
Hallmark Marketing Corp, a subsidiary of Hallmark Cards, has manufactured and distributed custom store fixtures and display stands for its stores at the Cedar Products plant since 1974. But, spokesman Steve Doyal said the building was never fully utilized.
The arrangement with Goer will "allow us to utilize other resources of the company and maintain operations in Cedar City," Doyal said. Hallmark employs about 30 people at the southern Utah facility.
In acquiring the plant, Goer will move its Los Angeles manufacturing operations to Cedar City, employing about 125 people.
Goer, a division of Reflector Hardware Corp., Melrose Park, Ill., will also produce store fixtures and showcases for department stores. A statement announcing the sale said Goer has annual sales of about $20 million, while its owner, Reflector Hardware, manufactures fixtures, merchandising equipment and shelving at plants in the United States and Japan with annual sales of $57 million.
Reflector took control of 80 percent of Goer in 1987 through the acquisition of Spartan Showcase Inc., which was a subsidiary of Goer. Goer's customers for its showcases and slatwall products include Sears, K Mart, Montgomery Ward, R.H. Macy and Wal-Mart.
Hallmark produces its fixtures and showcases exclusively for its own stores, Doyal said.
Goer had been searching for a site to relocate its Los Angeles operation when Pacific Power arranged last March for a visit to the Cedar Products plant, which Hallmark wanted to sell, the statement said.
Pacific Power is planning to merge with UP&L, pending federal regulatory approval, and the two utilities have launched an economic development program within the UP&L service area.
UP&L president Frank N. Davis said the Goer-Hallmark deal is "a milestone in our growing effort to promote the economic development of the areas we serve.
"We hope the Goer investment is first of a series of announcements we will be making over the next few years."