Katy Industries Inc. will boost its plastics involvement dramatically through a recently announced, proposed purchase of Contico International Inc.
Contico runs three plastic molding facilities in St. Louis, one in Norwalk, Calif., and one in Redruth, England, according to its founder and chairman, Lester Miller.
It also has metal products plants in California and Texas.
Katy is a diverse conglomerate with products ranging from cleaning chemicals and abrasive disks to industrial control systems. Its plastics stake is concentrated in its Wilson Cleaning Products business, which makes mops, brooms and plastic cleaning products, and in its Woods electrical cord products.
The two firms' product lines are complementary, Miller said in a telephone interview. Contico's plastic industrial and institutional cleaning products fit well with Katy's broad line of cleaners and related goods. Contico sells household storage containers and other housewares to retailers, and Katy has several product lines it markets to retailers, including mops, hand tools and electrical cords.
Miller estimates that his firm's annual sales of about $220 million are split fairly evenly between consumer and industrial/institutional markets. He established the company 36 years ago. Katy officials were unavailable for comment.
Katy has agreed to pay $165 million for St. Louis-based Contico. Miller will join the board of directors of Englewood, Colo.-based Katy.