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SERVISTAR AGREES TO ACQUIRE TAYLOR RENTAL FRANCHISE OPERATIONS

 Agreement With The Stanley Works Will Make Grand Rental Station
 And Taylor Rental The Largest Rental Chain In The United States
 BUTLER, Pa., May 24 /PRNewswire/ -- SERVISTAR Corporation has reached an agreement to acquire the franchise operations of Taylor Rental Corporation, a subsidiary of The Stanley Works (NYSE: SWK), it was announced today by Paul E. Pentz, SERVISTAR president and chief executive officer.
 Terms of the agreement were not disclosed.
 SERVISTAR is the parent company of Grand Rental Station, a cooperative of 260 rental stores throughout the United States. These stores, together with the 228 Taylor Rental Center franchises, will make SERVISTAR the largest general rental chain in the United States. Pentz said, "This acquisition will enable SERVISTAR to increase the profitability and sales growth of its rental program by offering new programs and more resources to its Grand Rental Station and Taylor Rental retailers."
 According to Pentz, "Taylor Rental Centers will retain the Taylor name, and each qualified franchisee will be offered a traditional cooperative licensing agreement. As a result, both Taylor Rental and Grand Rental Station will be able to thrive as strong, separate retail marketing programs."
 Richard Dandurand, president and general manager of Taylor Rental Corporation commented, "The cooperative arrangement will allow the Taylor franchisees to draw on additional resources, which will support business growth."
 Taylor Rental Corporation is a subsidiary of The Stanley Works, headquartered in New Britain, Conn. For the near future, Stanley will retain ownership of company-owned rental centers; however, it is Stanley's intention to offer these stores for sale to interested buyers, a spokesman said.
 Grand Rental Station has grown to 260 locations since 1985. SERVISTAR licenses the Grand Rental Station name and supplies rental products, store design assistance, training, computerization and advertising services to the licensees.
 "We have found the key to success of this program by applying the co-op concept to the needs of a general rental store," said Donald C. Belt, SERVISTAR senior vice president of marketing and strategic planning. "Co-op distribution has been used successfully in the hardware industry for 75 years, and SERVISTAR has translated it effectively to the retail rental business.
 "We will be meeting with all Taylor Rental franchisees over the next couple of months to sign qualified franchisees to the cooperative membership," Belt continued. "Perhaps the most important benefit to Taylor Rental franchisees will be the return of profits through a year-end patronage rebate offered by SERVISTAR Corporation."
 By joining the SERVISTAR cooperative, Taylor Rental franchisees will receive the following:
 -- Lower cost of products;
 -- Broader availability of product lines;
 -- 58,000 items available from warehouse at competitive prices;
 -- Rebates of co-op profits; and
 -- Strong marketing support service.
 SERVISTAR, headquartered in Butler, is a $1.4 billion member-owned wholesaler with more than 4,000 hardware, lumber and home center member stores worldwide. The company also operates SERVISTAR/Coast to Coast Inc., Grand Rental Station and Home & Garden Showplace.
 /delval/
 -0- 5/24/93
 /CONTACT: Michele Rothert, corporate communications manager of SERVISTAR, 412-284-1769/
 (SWK)


CO: SERVISTAR Corporation; Taylor Rental Corporation; The Stanley
 Works; Grand Rental Station ST: Pennsylvania, Connecticut IN: REA SU: TNM


CD-MP -- PG004 -- 1526 05/24/93 08:32 EDT
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Publication:PR Newswire
Date:May 24, 1993
Words:525
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