U.S. Plastic Lumber Corp. has done it again — made another acquisition, that is.
In its 14th deal since January 1997, the Boca Raton, Fla.-based firm has purchased the assets of Trimax of Long Island Inc. and its parent company, Polymerix Inc. Seven of those 14 acquisitions have been plastics-related.
The Trimax deal will enable U.S. Plastic Lumber to manufacture marine pilings, bulkheads, boardwalks and structural supports for its decking product.
Trimax and Polymerix own two U.S. patents for the manufacturing process and formulation of structural lumber made from recycled high density polyethylene and a fiberglass compound. The company also has applied for a patent overseas. Trimax operates proprietary equipment to manufacture the lumber.
``Owning two patents from Trimax to manufacture structural lumber, as well as holding the exclusive worldwide license from Rutgers University to manufacture structural plastic lumber railroad ties, will enable us to maintain a significant lead over any of our competitors in this market,'' said President Mark S. Alsentzer.
U.S. Plastic Lumber paid less than $1 million for the companies, but will assume some, if not all, of Trimax's debt, said F. John Long, vice president of sales and marketing for U.S. Plastic Lumber. The firm will continue operations at Trimax's facility in Ronkonkoma, N.Y., which has two lumber extrusion lines and 12 employees.
U.S. Plastic Lumber and Trimax had been in talks for more than a year. Last summer, acquisition negotiations between the companies fell through. Since then, Trimax had filed for protection under Chapter 11 of the U.S. Bankruptcy Code. According to U.S. Bankruptcy Court in New York, Trimax had 27 claims filed against it totaling more than $636,000.
Publicly held U.S. Plastic Lumber began trading on the Nasdaq stock market June 25 under USPL; it previously traded on the electronic bulletin board. It has plastic manufacturing plants and fabricating operations in seven states.
Its plastic lumber operations had sales of $8.13 million last year—contributing roughly 33 percent of the firm's total sales. The lumber and accessory products are made from 100 percent recycled HDPE.