Heywood Williams Group plc is expanding in PVC profile extrusion and component production with a planned £62 million ($104 million) buyout of Mottram Group plc's Spectus-Kestrel businesses.
Heywood Williams claims the acquisition will make it the largest supplier of PVC window, door and cellular profiles in Britain.
Heywood Williams of Huddersfield, England, is set to close the deal in late April. It will acquire five of Macclesfield, England-based Mottram's key English door and window system operations close to Manchester.
These include PVC window and door profile extruder Spectus Systems Ltd. of Macclesfield; Kestrel Building Products Ltd. of Congleton, which extrudes PVC cellular foam products; Altrincham resin blender and compounder Holts Blend Ltd.; Microshape Ltd. of Macclesfield, a tool, die and calibrator maker for PVC extrusion equipment; and profile distributor Plasbuild Ltd. of Manchester.
The deal awaits Heywood Williams board approval on April 29. The company initially will pay Mottram $59 million and assume around $38 million in debt. The company will pay another $7 million, contingent on the acquired units' 1998 profit.
The group of Mottram companies being sold employ around 500 and reported combined pretax profit of $8 million on sales of $102 million for the year ended Dec. 31.
Heywood Williams plans to retain the whole work force.
Britain's PVC window and door market will grow about 25 percent annually during the next three years, according to Heywood Williams.
Spectus supplies mainly the residential replacement window and door market. It is the national leader in PVC window profiles, a Spectus spokesman said.
Kestrel is ranked third nationally in design and extrusion of low-maintenance PVC cellular foam products for window installation and roofing markets. Heywood Williams said cellular profiles are rapidly replacing timber as window finishing products.
Heywood Williams recently strengthened its building products activities, buying Mila Hardware Ltd., an Irish window and door hardware manufacturer, and 65 percent of Coldseal Ltd., a PVC window fabricator and installer in Nottingham, England.
``The board believes that Spectus and Kestrel bring two strong brand names to the group. In addition, Kestrel introduces cellular profile extrusion, which enhances Heywood Williams' ability to serve the cellular profile market through its existing distribution channels,'' Heywood Williams said in a news release.
It added that Mottram's in-house tool manufacturing capacity will help Heywood Williams become Britain's lowest-cost extruder and also develop new products.
The takeover also will broaden the buyer's customer base, especially in the fast-growing public sector and new-construction markets.
Spectus has a growing export business to markets including Latin America, Eastern Europe and Belgium, France and the Netherlands, said a spokesman for the firm.
In the United States, Heywood Williams manufactures and distributes windows, doors and other products to builders of manufactured houses and recreational vehicles. It is based in Elkhart, Ind., and has plants in Elkhart and Leola, Pa.