By: Michael Lauzon
January 31, 2013
CALGARY, ALBERTA -- Bodtker Group of Calgary has added container blow molding and injection molding by acquiring a supplier, Reliance Products LP, for undisclosed terms.
Reliance in Winnipeg, Manitoba, already molds containers for industrial and consumer markets, mainly from high density polyethylene. For some applications it creates an internal barrier layer by inline fluorination, according to Bodtker leader of human resources and marketing Alanna Deis.
"There are a lot of synergies between the companies," Deis explained in a telephone interview. "We hope the merger will give a sum greater than the separate parts added together. From a cultural standpoint we are both people-focused."
Bodtker, through its subsidiaries, makes, refurbishes and distributes metal, fiber and plastic containers ranging from pill bottles to drums and operates blending and filling facilities. Great Western Container in Calgary is its largest subsidiary. Subsidiary Nemco Resources, although it molds a limited number of containers, had been a purchaser of Reliance containers for its lubricants and oil blending business. Reliance has other, major customers and will continue to supply them, according to Deis.
Reliance has annual sales of about C$24 million (US$24 million) and employs more than 125. Bodtker plans to keep the purchased business in Winnipeg.
Bodtker overall now has sales of about C$105 million to C$110 million (US$105.1 million to US$110.1 million) and employs more than 500.
Reliance was owned by a partnership of five investors. It should provide synergies with other Bodtker businesses in Winnipeg, namely Great West Containers and Nemco.
"Reliance delivers on all of our acquisition criteria," stated Bodtker President and CEO Nils Bodtker in a news release. "It aligns with our core values, has great technology and people, has commitment to the environment and strengthens our position in growth markets."
Bodtker Group used to be known as GWC Services, established in 1979, but changed its name a few months ago.
"This alliance will bring to our customers a larger, more talented resource base and dramatically increases our footprint in Canada, including a western Canada manufacturing capability," noted Reliance CEO Charles Schiele in a news release.
P&M Corporate Finance LLC served as a financial adviser to Reliance.