TORONTO-Royal Plastics Group Ltd. completed the acquisition of vinyl window blind producer Novo Industries Inc. of Houston on Dec. 1, making it the largest producer in North America. Toronto-based Royal paid US$60.7 million, 80 percent of which was cash and the remainder in 902,751 Royal subordinate voting shares.
Novo's sales last year were about US$45 million, similar to those of Royal's vinyl blind business. Royal announced an agreement for the purchase of the employee-owned company Oct. 16.
The deal boosts Royal's mass merchandise retail distribution base for window blinds and allows Novo and Royal operations to integrate vertically.
Novo's PVC compounding facility in Houston will supply Royal window blind plants located in Mexico and Florida, and Royal will supply Novo with injection molded parts and metal components.
Novo management will continue to operate the business in Houston. About 97 of Novo's 440 employees were awarded options to purchase Royal shares. Masoud Ladjevardian will remain president of Novo.
Novo Europe BV, which produces vinyl blinds in Amsterdam, the Netherlands, is in-cluded in the deal.