Denali Inc. plans to diversify in reinforced plastics by acquiring a business that can perform on-site manufacturing of large fluid-handling components, such as tanks.
Denali will buy CC&E/RPS of Redmond, Wash., for undisclosed terms from Reinforced Plastics Systems Inc. of Mahone Bay, Nova Scotia. Mel Carter, Denali vice president of business development, said his firm expects CC&E to log sales of about $4 million this year.
CC&E builds glass-fiber-reinforced tanks, stack liners and similar products for pulp and paper, electrical power and other industries. Construction in these industries is increasing as firms invest to meet more stringent environmental regulations, Carter said in a telephone interview from Denali's head office in Houston. Denali wants CC&E to capitalize on the upswing in such construction, he said.
Carter said CC&E can make tanks as big as 100 feet in diameter at a customer's site. Denali subsidiary Ershigs Inc. will manage CC&E. Ershigs does on-site FRP installation and also makes tanks in Bellingham, Wash., where it is based, and in Biloxi, Miss., and Wilson, N.C.
Ershigs and a metal tank subsidiary make up Denali's engineered products group, which has annual sales of about $37 million. Denali also owns Containment Solutions Inc., a Conroe, Texas, producer of FRP fluid storage tanks used by gasoline retailers and other industries.
Carter said Denali's sales run about $105 million a year, more than half from FRP industrial products. It went public last year.