Associated Hygienic Products has acquired the assets of fellow private label diaper maker Arquest, Inc., effective May 25, 2011.
AHP is a wholly owned subsidiary of Disposable Soft Goods International, a privately held global company that also manufactures baby diapers and pants as well as adult incontinence products, at production facilities located throughout Southeast Asia and China.
AHP has been manufacturing and marketing disposable baby diapers and training pants for retailers in North America since 1984 and is one of the largest suppliers of private label diapers in the U.S.The company, headquartered in Duluth, GA, has recently constructed, state-of-the-art manufacturing and distribution facilities in Delaware, OH and Waco, TX, producing both branded and proprietary diaper and training pant programs.
Privately held Arquest is a privately held company founded in 1991 as part of a spin-off from Johnson & Johnson. The Cranbury, NJ-based company is a major supplier of private label disposable baby diapers and training pants with manufacturing assets in Camden, AK.
This strategic acquisition effectively blends the mutual strengths of industry longevity, category commitment and expertise, strong product innovation, technically strong and well experienced associates, supply chain superiority, manufacturing synergies and solid retail partnerships, according to executives.The acquisition expands AHP’s customer list, clearly positioning it as one of the largest suppliers of private label baby diapers in North America.Another strategic motivation is that the two companies share a strong cultural commitment to their products, customers, and the consumer.The combined companies will provide the broader scope and purchasing power needed to compete against long-standing national brand programs.
“I am extremely pleased to acquire the assets of Arquest because we are able to combine the two most experienced and committed private label manufacturers within the disposable baby diaper and training pant category in North America," CEOand pesident of AHP George Jackson III said. "I believe we are truly focused on providing our customer partners with the best-in-class disposable baby products and category strategies; versus producing private label diapers and training pants as a side business within a larger industrial products footprint. We share tremendous similarities in terms of superior product knowledge, technical expertise, category analytics and most importantly a focus on serving our customers.I envision a very quick and effective combination of the two companies.”