Composite One approaches $1 billion sales mark with Nexeo deal

By Frank Esposito
Senior Staff Reporter

Published: June 12, 2014 3:29 pm ET
Updated: June 12, 2014 11:17 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers, United States, Canada

Composites One LLC has bought the composites distribution business of Nexeo Solutions LLC for an undisclosed price.

The deal will allow Arlington Heights, Ill.-based Composites One to offer its “extensive product line, unmatched technical support, dependable service and delivery to more customers in the U.S. and now, across all of Canada,” officials said in a June 10 news release.

“We are looking forward to combining the talent and experience of both organizations,” President and Chief Operating Officer Leon Garoufalis added in the release.

About 100 Nexeo employees will join Composites One as a result of the transaction, including some based in offices in Dublin, Ohio; Montreal and at Nexeo’s headquarters site in The Woodlands, Texas.

Nexeo’s composites distribution business has annual sales of between $250 million and $300 million. Combining that with Composites One’s annual sales total of between $600 million and $700 million will create a massive composites distribution entity with annual sales of between $850 million and $1 billion.

Nexeo had been “a formidable competitor for many years,” Composites One marketing and communications director Marcy Offner said in a June 11 phone interview. “They’ve always helped us stay focused on value-added services. Both sides agree this is the right time to come together.”

She added that the deal will gain Composites One some new suppliers and will allow the firm greater access to the overall Canadian market. Previously, Composites One’s Canadian efforts had been focused in British Columbia.

The final deal may include some composites inventory, but won’t include any warehouses or property, officials said. The sale “reflects Nexeo’s strategic direction and fuels our multi-year transformation and commitment … to differentiate ourselves in the marketplace,” president and chief executive officer David Bradley said in the release.

Composites One has been solely owned by the Dehmlow family — through its Synergy 55 Corp. business — since 2012, when they bought out joint venture partner CCP Composites. The firm’s history dates back to 1940, when Louis H.T. Dehmlow III and two business partners founded Great Lakes Solvents in Chicago. Its current distribution mix includes resins, reinforcements, gelcoats, pigments and related products from more than 450 suppliers.

Nexeo was formed in 2010 when private equity firm TPG Capital paid $930 million for the global distribution business of Ashland Inc. In the first half of its 2014 fiscal year — ended March 31 — Nexeo posted sales of almost $2.3 billion. That total was up almost nine percent vs. sales in the first half of fiscal 2013. Nexeo’s sales are split almost evenly between chemicals and plastics, where it ranks as one of North America’s largest resin distributors.

Earlier this year, Nexeo paid $125 million to acquire Archway Sales Inc., a St. Louis-based chemicals distributor whose product mix includes some specialty plastic resins and plastic additives. Archway’s annual sales are estimated at about $200 million.


Comments

Composite One approaches $1 billion sales mark with Nexeo deal

By Frank Esposito
Senior Staff Reporter

Published: June 12, 2014 3:29 pm ET
Updated: June 12, 2014 11:17 pm ET

Post Your Comments


Back to story


More stories

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Baxter investing $300 million to expand dialyzers production in Alabama

August 29, 2014 12:53 pm ET

Baxter International, Inc. is expanding its Opelika, Ala. manufacturing location to boost production of dialyzers, a key component of hemodialysis...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Updating a travel icon for the professional millennial

August 29, 2014 11:44 am ET

As part of a drive to expand its customer base to include more millennials, Airstream Inc. turned to the Columbus College of Art & Design's...    More

Image

American Starlinger-Sahm begins work on new US headquarters

August 29, 2014 10:18 am ET

American Starlinger-Sahm Inc., which sells equipment for woven plastic bag production, PET recycling equipment, sheet extrusion and laminating lines a...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events