Summa Industries has reached a definitive agreement to buy Falcon Belting Inc. from William Faulkner and, in a consolidation of competitors, intends to operate Falcon with Summa subsidiary KVP Systems Inc. Faulkner plans to retire.
Falcon employs about 60 and makes modular plastic conveyor belting for food processors at a 22,000-square-foot facility in Oklahoma City. Falcon had sales of $4.8 million for the fiscal year ended Jan. 31.
In an April 21 news release, Summa said it will pay about $2.2 million in cash, assume some liabilities and make royalty and other future payments totaling about $2.7 million.
The deal is scheduled to close in May.
Eric Palmaer, KVP president, will head the new entity, to be known as KVP Falcon Plastic Belting Inc. The company will have operations in Oklahoma and California.
KVP of Rancho Cordova, Calif., makes plastic components for conveyer belts and chains.
Summa, with headquarters in Torrance, Calif., reported profit of $959,000 on sales of $21.2 million for the three months ended Feb. 28. The period was the first complete quarter since the firm's Oct. 28 acquisition of Calnetics Corp. for $31.2 million.