Harland tannery to make history Plan to merge with Berwick company will create largest leather producer in U.S.

HARTLAND – Irving Tanning Co. in Hartland and Prime Tanning Co. Inc. in Berwick announced Monday that they have signed a letter of intent to merge, a move that will create the largest leather tannery in the U.S. with revenues in excess of $225 million a year, according to the companies.

Together, the two tanneries employ 565 people. Company officials said the consolidation would not immediately affect jobs and that the possibility of expansion is being explored. The companies produce leather sold to numerous makers of shoes, belts, purses and other accessories and products around the world.

The combined entity will be called Prime Tanning Co. and will be led by President and CEO Bob Moore and Co-Chairmen Mike and Steve Kaplan of Prime Tanning. Dick Larochelle of the Hartland facility will become executive vice president, whose duties will include overseeing international operations.

Paul Larochelle, vice president of operations at Irving Tanning and the son of Dick Larochelle, will become vice president of finish leathers operations and will be responsible for overseeing both the Hartland and the Berwick facilities.

Paul Larochelle said Monday that for the next couple of months, “it will be business as usual” at the Hartland facility and that the merger “is definitely good news for both companies.”

The final consolidation is expected to take six to eight weeks to complete and is what the industry calls “a vertically integrated” move. Paul Larochelle said this means the companies will supply each other, with Prime providing preserved rawhides. “We will be self-supported,” he said.

Paul Larochelle said the merger “holds all possibilities” and that there is the potential to include other ventures in the future.

Irving Tanning Co. is one of the largest side-leather tanneries in the U.S., with the capacity to finish more than 30 million feet of leather a year. Side-leather refers to the side of the cow. The company was established in 1925 and acquired by Meriturn Partners LLC in 2005.

Irving employs about 115 people at the Hartland tanning facility, and finishes leather in India through a joint venture with Bhartiya International LTD.

Prime Tanning operates a facility of similar size in Berwick, as well as an operation in St. Joseph, Mo., that preserves rawhides. Paul Larochelle said the two Prime locations can process 155 million feet of leather a year. About 450 people are employed at Prime’s two locations.

The companies’ finished leather operations have minimal customer overlap, Paul Larochelle said, and, combined, will have a portfolio of leading footwear and accessory brands that include Born, H.H. Brown, Coach, Cole Haan, Justin Brands, Rocky Brands, SAS, Sofft, Timberland, Wolverine and the U.S. military.

Prime’s CEO Bob Moore said in a prepared statement, “This merger leverages the synergies and shared potential of both companies. The new Prime will offer its customers an unparalleled [research and development] platform and enormous capacity and flexibility, combined with a higher level of sales, service and responsiveness. We look forward to the significant benefits that this merger will bring to all of our stakeholders.”

Irving’s current CEO, Dick Larochelle, also praised the merger.

“This is a logical step for our two companies,” he said. “We are excited to merge our unique competencies with Prime’s, while also creating a strong and viable partner to our customers, suppliers and employees. Together, we have enormous potential to improve the standing of U.S.-based leather tanneries on the global stage.”