GWB (USA) Inc. has made its second North American compounding purchase by buying a majority stake in UVTec Inc., a Dallas-based compounder and concentrate maker.
UVTec — which employs 72 at its Dallas office and Arlington, Texas, plant — makes polyolefin-based compounds and concentrates primarily using flame retardants and UV-stabilizers. Its major markets include film and fiber, building materials and wire and cable.
UVTec will keep its existing management team, including president, chief executive officer and founder David Cherry, and will operate independently of PolyTech South, the Atlanta-based compounder that GWB (USA) bought in early 2000.
GWB (USA), which is also based in Atlanta, is the North American arm of Gartland Whalley and Barker plc, an investment group based in Halifax, England.
UVTec and PolyTech South have different operating strategies. UVTec runs its own compounding plant while PolyTech South opts to have its compounds made by several toll compounders. GWB (USA) does not plan to make any changes to these differing styles, according to corporate development director Patrick Coyne.
"We go out and buy good businesses and leave their management teams intact," Coyne said by phone Jan. 18. "We don't buy them just to change them."
Coyne added there may be cross-selling or product development opportunities between UVTec and PolyTech South that GWB (USA) might be able to exploit while allowing both units to retain their independence.
"Our strategy is to keep [UVTec and PolyTech South] autonomous," he said.
GWB (USA) declined to reveal how much it paid for its majority stake in UVTec or what UVTec's annual sales are.
GWB (USA) paid $11 million for PolyTech South, which posted sales of almost $16 million in the 1999 fiscal year. A sales total for the 2000 fiscal year was unavailable.
GWB (USA) also has a small plastics presence through Iroquois Precision Components Inc.
Iroquois, based in Winsted, Conn., owns six metal-stamping businesses, including Sun Microstamping Inc., a Clearwater, Fla., firm that also does plastic insert molding.
Coyne said GWB (USA) scrapped plans to take Iroquois public in November because of uncertainty in the stock market. The company has no timetable for a new public offering.
GWB's British plastics holdings include Cirqual plc and Windmill Extrusions Ltd., a pair of profile extruders based in Ashbourne, England.