TORONTO — Royal Plastics Group Ltd. plans to diversify into large plastic pipe fittings by acquiring Plastic Trends Inc. of Washington, Mich., about 25 miles north of Detroit.
Plastic Trends injection molds mainly PVC fittings for municipal sewer and water pipes up to 1 foot in diameter. It will complement Royal's pipe extrusion business and will allow the Toronto firm to offer ``a more complete package'' to municipal customers, the firm said in a Jan. 16 news release.
Royal spokesman Mark Badger said Plastic Trends will represent a new business for Royal, which does some molding of smaller pipe fittings. Royal extrudes pipe at three plants in Canada for municipal, plumbing, electrical and industrial markets.
Jon Houghton, Plastic Trends' vice president and general manager, said Royal's vertical integration will help his firm improve product quality and service. Officials did not disclose the size of Plastic Trends or terms of the deal, which is expected to close in late February.
Royal also recently announced an agreement to buy Baron Metal Industries Inc. of Woodbridge, Ontario, a small producer of metal doors and frames. It expects to complete the deal by the end of January.