Maax Inc. expanded its acrylic and fiberglass bathware production to western North America by completing acquisitions of two firms. The Ste. Marie de Beauce, Quebec, company bought Hydro Swirl Manufacturing Corp. of Bellingham, Wash., on Oct. 20 and a week later purchased Valley Fibrebath Inc. of Armstrong, British Columbia. It announced agreements to buy the firms in the summer.
The deals boost Maax's sales on North America's west coast and will allow it to expand exports to Pacific Rim countries.
Maax will pay US$5.5 million for Hydro Swirl, including US$1.8 million on the closing date and the rest over the next year. Hydro Swirl's sales last year were US$7 million and its earnings before taxes were US$1.5 million. Hydro Swirl makes high-end acrylic bathware. It paid C$8 million (US$5.8 million) and 250,000 Maax common shares for Valley Fibrebath, which had sales of about C$21 million (US$15.3 million) last year. The firm has plants in Armstrong; Airdrie, Alberta; and Monroe, Wash.
Maax said Hydro Swirl can generate annual sales of US$15 million within three years. It also predicted Valley Fibrebath's sales will grow to C$35 million (US$25.6 million) within three years. Publicly traded Maax had sales of C$38.1 million (US$27.8 million) and profit of C$2.2 million (US$1.6 million) for the six months ended Aug. 31.