Plastic bathware producer Maax Inc. plans to add injection molding to its processes through the acquisition of most assets of Shostal Ltd. of Lachine, Quebec.
Maax of Ste. Marie de Beauce, Quebec, agreed to buy Shostal's plants in Lachine and Dorion, Quebec, and Calgary, Alberta, for undisclosed terms. Shostal had sales of C$38.4 million (US$27.1 million) for the year ended Feb. 28. Maax predicts Shostal's sales will reach C$45 million (US$31.7 million) for the current year.
Shostal partner James Stapleton said his firm runs five thermoplastic injection presses with clamping forces of 90-1,450 tons at Lachine to make laundry tubs, shower components and related products out of polypropylene and acrylic resins. Lachine, at 230,000 square feet, is Shostal's largest plant.
Shostal makes package showers, tub walls, medicine cabinets, acrylic tubs and showers and other bathware products primarily with the Fasco and Spartan brand names.
The company mainly sells to home improvement centers and plumbing wholesalers in Canada and the United States. A hardware metal die-casting operation in Mississauga, Ontario, is not included in the Maax deal. Officials expect to finalize the deal by May 15.
Placide Poulin, Maax's president and chief executive officer, said Shostal will boost Maax's retail distribution and will complement its planned acquisition of KSD Industries Inc., a producer of shower doors and medicine cabinets in Southampton, Pa. KSD uses glass and aluminum but not plastics in its operations. Maax expects to complete the KSD purchase April 7. Maax has arranged loans with the National Bank of Canada for the Shostal and KSD acquisitions.
Shostal, established in 1971, is majority owned by Harvey Blatt. Blatt and Stapleton will continue to manage their business after Maax acquires it. Poulin said Maax plans to close Shostal's small, recently opened Calgary plant because Maax already has a production facility in nearby Airdrie, Alberta.