BY KIM PHELAN
Contributing Editor

Classic Party Rentals expanded its geographic boundaries and broadened its customer service capabilities when the nation’s largest events rental company bought Regal Rents and its daughter company, Tri-Rentals, this summer. Classic, based in Culver City, Calif., closed on the acquisition July 5, a deal that was carefully negotiated and planned, says Michael Miner, vice president of sales and marketing at Classic. It’s a deal that fits neatly into Classic’s acquisitions-intensive growth strategy.

The purchase of Regal and Tri-Rentals put three companies under Classic Party Rentals’ tent in an18-month span. The company bought Unique Tabletop early in 2003.

“We remain a company that has a business plan that incorporates organic growth and strategic acquisitions, and that’s not going to change,” Miner says.

Classic’s aggressive pursuit of growth is evident in its appointment Sept. 20 of new CEO and Board Member John Campanelli. The former RR Donnelly executive’s vigorous strategic growth plan resulted in 400 percent growth for the Chicago-based Fortune 500 company in less than six years. Campanelli succeeds Classic founder and former President John Moran.

Classic hopes to evolve from a $100 million company to a $300-$400 million company, and Miner indicates that Campanelli was selected to lead the company toward its growth goals. Classic remains a privately held firm that now operates from 11 locations in California, Arizona and New Mexico.

Already a strong player in the Los Angeles market, Classic gains firmer footholds in the L.A. metro area through its new ownership of Regal Rents, according to Miner. The addition of Tri-Rentals enables Classic to put footsteps into Arizona and New Mexico, where it has not previously had a presence. Miner says the acquisitions bring other important assets, including the strong image, quality equipment and impressive linens of Regal and the highly experienced and skilled teams from both Regal and Tri-Rentals.

“These were both very successful companies,” Miner says. “Adding this caliber of business into your network is obviously going to have a favorable impact across the board, including the financial measures. But more important than what they brought to the balance sheet is the addition of dedicated team members and the opportunity to provide even better service to more clients.”

The purchase of Regal and Tri-Rentals was thoughtful and deliberate, adhering to Classic’s rule of thumb that ranks quality above velocity when it comes to making acquisitions. Miner says Classic is much more interested in partnering with like-minded companies that share its values of integrity, customer service and quality products.

So while growth is indeed a top priority, Classic will continue to opt for right fits rather than force fits.

“Each acquisition is highly unique and requires different steps to bring together,” Miner says. “There’s always advanced planning and it’s rarely a rapid response situation. It’s more of a case of negotiations that lead to more serious negotiations. Timing is much less significant than making the proper choices. Our business strategy does involve strategic acquisitions, but when they happen is when they happen.”

Classic Party Rentals is well known for its high profile, high-style media glamour events. The company just finished Emmy parties, says Miner, and will be handling the Golden Globe Awards, the Academy Awards and Macy’s Passport, a charitable event. Despite such limelight affairs, big corporate events and private parties remain the bulk of Classic’s business, according to Miner. He asserts that his company strives to serve the homeowner’s backyard party with the same degree of excellence as the most glitzy of celebrity gatherings.

Careful marketing tools and techniques will inform Classic’s entire client base about its expanded capabilities since adding Regal and Tri-Rentals. Goal No. 1 over the next several months is to create a seamless and nothing-but-positive transition for the large circle of event planners, caterers, event venues and hosts that already depend on Classic. The company uses such approaches as letters and personal phone calls to existing customers, as well as postcards and press releases to spread news of its bigger and better services. Classic also employs customer surveys to measure its performance among clients.

As for entering new market niches within the events rental business, Miner says that CEO Campanelli and the management team are evaluating all of Classic’s product lines with a view to expand into related rental products where customer need and demand are strongest.

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