Blaine Kitchenware

Blaine Kitchenware Inc is a wide-range producer of small kitchen appliances. Its products are used in food, beverage preparation and cooking. It produces products such as deep fryers, griddles, waffle irons, toasters, small ovens, blenders, mixers, pressure cookers, steamers, slicers and coffee makers. In 2006 BKI was a consolidated company in the small kitchen appliances industry, having 10% of the market share. BKI’s products were well-known and well-regarded by the customers. Most of its products were retailed at medium price or below the products offered by the best-known brands in the industry.

Small kitchen appliances industry is composed of three major segments: food preparation appliances, cooking appliances and beverage-making appliances. BKI operated in all three segments but most of the revenues were generated from food preparation and cooking appliances. The company possessed only 2% of the beverage appliances market share. In 2006, most of the revenues, namely 65%, came from US market and the rest from sales to Canada, Europe and Central and South America. Even though BKI was a public company following its IPO in 1994, most of the shares were owned by family members descended from the firm’s founders. Family ownership’s influence was not only reflected in the board of directors but also in the governing of the company. BKI’s CEO of Victor Dubinski, a great-grandson of one of the founders.

Historically BKI financial strategy was concentrated on acquiring small independent manufacturers and if we compare the balance sheet over the years we can easily figure it out. In 2004 Plant and Equipments accounted for $99.4 million whereas in 2006 they reached the value of $174.3 million. The acquisition activity has been financed by cash which has been in excess during recent years. In April 2007 the management of the company didn’t have any acquisition target. So far the excess of cash mention the ration compared with other companies in