LEE-ROWAN: ALL 1,200 WORKERS TO BE KEPT BY NEW PLANT OWNER

JACKSON -- "They made Sam Walton. Then, they made Desmond Lee."

This was the statement of Steve Johnston in expressing his feelings toward the owner of Lee/Rowan, which was sold this week to the Newell Company of Freeport, Ill.

"There will always be changes," said Johnston, personnel manager at the Jackson facility of Lee-Rowan. "But, we're sure going to miss Desmond Lee. He's been a great person to work for.

"Walton and Lee are two of a special kind," added Johnston, a 25-year employee of Lee/Rowan, headquartered in St. Louis.

There are few people who don't know the success story of Sam Walton, who built an original five-and-dime operation into the nation's largest retail giant, Wal-Mart.

And a lot of people know the success story of Lee, who built a metal closet accessories and storage products manufacturing firm into a multi-million dollar business.

Johnston's feelings toward Lee and his company are shared by many of the more than 1,200 workers at the Jackson facility, which includes more than 635,000 square feet under roof.

"Newell will be a real asset to the company and its employees," said Johnston. "But, we'll miss Lee."

Barbara Barks agrees.

"This is a great company to work for," said Barks, office manager with the firm. "But, it's sad to lose Desmond Lee."

Lee will be around for a while. Under the sales plan, he will serve as an adviser for the company over the next two years.

"I'll still be around," said Lee, who was in Jackson this week to announce that he had signed an agreement to sell his Lee-Rowan company to Newell. "I'm visiting and talking with all of the employees here. I'm talking to each one of them personally."

Under the terms of the agreement with Newell, the company will retain its name as the Lee/Rowan Division of Newell. Gary Lee, son of Desmond Lee, will be president of the new Lee/Rowan Division.

"Lee/Rowan has enjoyed remarkable growth and has earned a reputation for excellence in supplying the nation's largest mass retailers," said William P. Sovey, Newell chief executive officer. "We are very pleased that this fine company will become part of Newell."

Newell manufactures and markets staple consumer products that are sold through a variety of retail and wholesale distribution channels. Product categories include hardware, housewares, office products and educational products. Among the more than 20 companies owned by Newell are Levelor (fashion windows), Benza-Matic Propane and Easy Painters.

"We're looking forward to working with Newell," said Jack Schwettman, manager of the Jackson plant. "The company has assured us that it will retain all workers. There will be no change in operations.

"We're running three shifts right now," said Lee. "And, we're running a lot of overtime."

Lee said the firm had sales of about $100 million in 1992.

"Our employees will all be retained," said Lee. "And, they will have wonderful benefits."

This was a concern with some workers.

"We have had a profit-sharing program here," said Lee. "That program will continue through 1993, then Newell will introduce its own benefit package. I can guarantee that it will be just as good, or better, than the current program. Newell has a good benefit program."

Lee stressed that the profit-sharing funds that have been placed into employee retirement plans is protected. "Our employees will not lose anything. It's all protected by the government."

Lee said he was impressed with the Newell Company and its operations.

"The firm is a strong force in its marketplace," said Lee. "Becoming part of Newell will give us greater strength in the global market place."

Lee-Rowan was founded in 1939 by Edgar D. Lee and John V. Rowan in St. Louis. The company's first products were metal trouser creasers that were sold to Sears, Roebuck and Co. and JCPenney, which have been Lee-Rowan customers for 50 years.

During World War II, the firm, unable to obtain steel for the trouser creasers, started manufacturing arming wires for bombs. After the war, the firm experimented with new products that eventually led to Storage Systems by Lee-Rowan.

Today, the firm offers not only the hangers, but a complete line of ventilated storage products and an assortment of traditional closet accessories.

The firm manufactures and distributes home organizational products in the United States, Canada, Japan, United Kingdom, Australia and the Caribbean basin.

The Jackson plant is the largest Lee/Rowan facility.

"I can remember when we worked out of one building here," said Johnston. "We had supplies on one side of the building, production on the other side, and shipping at the rear of the building."

Lee/Rowan opened its Jackson operation in 1964 in a 42,500-square-foot building with 25 employees. Since then, the plant has undergone more than 10 additions and employs more than 1,200 people.

Lee/Rowan employs about 300 at its St. Louis facility, and only recently opened a new facility at Newbern, Tenn.