Drew Foam Cos. Inc. acquired Amotex Plastics, an expanded polystyrene foam producer in Nashville, Tenn., on Feb. 28 for undisclosed terms.
Drew Foam of Monticello, Ark. plans to boost Nashville's capacity within 12-18 months, said Jim Magness, Drew Foam president. He provided no further details.
Amotex extends Drew Foam's geographic market reach and broadens its EPS/cardboard and other EPS composite packaging products, Magness said.
Both firms sell EPS packaging, insulation and other housing products made by block molding. Drew Foam also fabricates rigid urethane foam into gas-resistant boat flotation products.
Magness estimated Drew Foam's sales at about $15 million a year, roughly six times the size of Amotex. They sell to similar markets but have different customer lists.
Terry Martin, Amotex's former secretary and treasurer, expects Drew Foam to develop Tennessee markets more aggressively than Amotex management did. She said Drew Foam's technical expertise also will help Amotex, now a division of Drew Foam, increase its sales.
Martin said she, her brother Rich and another investor sold Amotex because it was debt-free, they have no heirs and the market is becoming more competitive. Terry and Rich will continue with Amotex in office and sales responsibilities, respectively. Tami Hobbs will remain production manager at Nashville.
Amotex was founded in 1962. Drew Foam, a closely held firm, has been operating for 33 years; Magness is a minority owner.