LEGO Education changes owners
By Andrew Nash
The Morning Sun
May 17, 2013
PITTSBURG, KS - While it may seem like a major change, business will continue as
usual for LEGO Education employees in Pittsburg.
As part of an announcement Wednesday, the LEGO Group is buying Pitscos share of
their joint venture in LEGO Education and entering into a service agreement
between the two companies for many of the services related to LEGO Education.
We are sorry to see the LEGO Education joint venture as we know it come to an
end, but we are excited about the future of Pitsco and our new partnership with
the LEGO Group, said Harvey Dean, Pitsco CEO. Very little will change in
services we provide to more than 8 million students each year. Pitsco will be
positioned to better focus efforts on the K-12 education market in the U.S. and
its broadening markets internationally.
Confused? Heres the longer version: LEGO Group and Pitsco have had a joint
venture in LEGO Education since 1997, but LEGO Group is now buying Pitscos 49
percent ownership effective January 1, 2014.
North America is LEGO largest market for education, said Pitsco President Lisa
Paterni. Its gorown through the partnership to be their largest market. They
wanted to be closer to their market and be better leveraged in North America.
The second portion is that LEGO Group and Pitsco have entered into a service
agreement that will see LEGO Education products for North America shipped out of
and serviced through Pitscos facilities. LEGO Group will purchase warehousing,
order entry, customer service, technical support, purchasing, graphics
production and educator insights from Pitsco. The business and operations
functions for LEGO Education will still be delivered by Pitsco employees in
Pittsburg. To sum, the logistics end of LEGO Education will continue being
provided by Pitsco.
However, all 28 LEGO Education North America sales and marketing staffers now
working for Pitsco will be offered jobs in the new LEGO Education North America
company as potential employees of the LEGO Group. Paterni said that it will be a
little bit strange, sad and different for Pitsco to change roles, but that they
are happy to continue in partnership with the LEGO Group.
Its a change in the fact that we had an impact and a voice in the joint
venture, and now we wont, Paterni said. We felt we impacted millions and
millions of students because we had a voice as an owner. Although nobody will be
losing their jobs, there will be a difference since well be providing a
service. Were happy to be a part of being able to service teacher and schools.
Well continue to provide great service in the days ahead, but it will be sad
because we wont be able to be as big a part of it as wee have been. Current
LEGO Education North America President Stephan Turnipseed will take on a new
role in business development and strategic partnerships for the LEGO Group while
a new president is projected to be on board in August.
-end of report-
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