ANSONIA, CONN. — Farrel Corp., which makes plastics and rubber processing equipment, plans to acquire Francis Shaw Plastics Machinery Ltd.'s rubber machinery business in Manchester, England, Farrel announced Dec. 4.
In the rubber industry, Ansonia-based Farrel is known for its Banbury mixers and other mixing and extrusion equipment. Francis Shaw makes rubber extruders and Intermix brand internal mixers.
Rolf Liebergesell, Farrel's chairman, president and chief executive officer, said Farrel has entered into a conditional contract to acquire the business from EIS Group plc of London. Farrel plans to merge the Manchester operation into Farrel's factory in nearby Rochdale, Liebergesell said in a news release.
Liebergesell said Farrel expects the acquisition ``to add significantly to profits for 1998. The addition of approximately $10 million to our current backlog will improve our prospects for 1998 as well.''
Publicly held Farrel has rebounded financially in 1997. Through the first nine months, Farrel reported sales of $64.3 million, a 30 percent gain from $49.1 million in sales through the first nine months of 1996. Profit was $1.5 million; Farrel lost $1 million in the first nine month of 1996.
Even with the brighter picture, Farrel said the rubber and plastics machinery markets remain ``extremely competitive.''
``A substantial portion of the 1997 shipments reflects orders received in 1996, when the company's order intake was higher than that experienced in prior years,'' the company said.
Farrel did not release terms of the deal, but a published report from England said Farrel paid about $4 million.
EIS owns both Francis Shaw and Betol Machinery Ltd. in Luton, England. Betol specializes in extruders that make tubing.
The deal comes about two months after EIS Group merged Francis Shaw and Betol into a single entity that uses the Betol name for all the equipment.
EIS moved Francis Shaw's plastics management and engineering from Manchester to Luton, but left the rubber extrusion operation in Manchester.
In plastics, Farrel makes large-scale plastic pelletizing systems and compounding lines.
Farrel officials could not be reached for further comment.
