In a $60 million deal, Myers Industries Inc. is acquiring blow molder WEK Industries Inc. and sister firm Michigan Rubber Products Inc. from Applied Tech LLC. The deal is to close in early March.
WEK has about $20 million in annual blow molding sales and 22 machines. The firm operates one plant in Jefferson, Ohio, and employs about 180.
Officials said the acquisition will allow Myers to offer value-added, engineered products. WEK's offerings include ducts for heating, venting and air conditioning; toolboxes; and automotive, motorcycle and all-terrain vehicle products.
``It gives [Myers] a better presence in automotive with Tier 1 suppliers,'' said Robert Kosowsky, an analyst with New York-based Sidoti & Company LLC.
Akron-based Myers makes products for materials handling and storage, and planters and garden accessories via various processes including rotational molding, injection molding and vacuum forming. It also is involved in rubber processing. Myers recently announced that it will streamline its consumer product lines as it focuses on niche items, including industrial and commercial products. Officials said consumer products represent about 5 percent of its total sales.
Raymond Langton, co-founder and chief executive officer of Radnor, Pa.-based Applied Tech, said his firm ``received an excellent offer from Myers.''
``This allows us to focus on and invest in our health and beauty-care and engineered rubber and plastics groups - which include health care, electronics, consumer and industrial. We'll continue to expand globally,'' he said.
``We now have two equity investments in two companies in China, which fall under the umbrella of ATP Health & Beauty Care, and we'll expand further in Asia and into Eastern Europe.''
Langton said Applied Tech plans to build two plants to replace two older facilities in China, but he did not elaborate. The company also is looking for rubber and plastic manufacturing investments for its Engineered Rubber Products group, he said.
Akron-based sister publication Rubber & Plastics News contributed to this report.
