Kwik-Lok Corporation’s success has been based on the premise of the razor/razor blade philosophy. They make a machine that secures bags containing bread, apples, potatoes and the like. More importantly, they provide the plastic closure that secures the bag. They saw the Seaco rubber band machine as a complement to their business where the “razor” was the applicator machine and the “razor blade” was the rubber band.
After two years of a due diligence, Kwik-Lok acquired Seaco Industries and formed Rubber Band Technologies, Inc. The company sold for a large multiple of our original investment.
The principals of both companies also formed a joint venture called Ex-Press-Ad of providing “front page advertising” by using the Kwik-Lok closure with a tag in the form of a coupon that was attached to newspapers by a rubber band. Newspaper around the country were contracted to provide distribution and many well know companies such as Burger King, KFC, McDonalds, Taco Bell, etc. came on board as customers reporting sales increases far in excess of other promotions. We called this company Ex-Press-Ad