Teknor Apex Co. of Pawtucket, R.I., has grown its compounding unit by acquiring Chem Polymer Corp., an engineering resins compounder in Fort Myers, Fla., for an undisclosed price.
``This really diversifies our compounding business, since our focus has been on PVC and thermoplastic elastomers,'' Teknor Vice President Bert Lederer said in a Jan. 5 phone interview. ``We had some customers in common [with Chem Polymer], but our businesses really are complementary. This is a very good investment for us.''
In a news release, Teknor President Jonathan Fain said the purchase is the latest step to broaden the firm's technology base.
The deal includes a plant in Fort Myers and two in England - in Oldbury and Cinderford. Together the plants operate 15 extrusion lines with capacity of about 66 million pounds. Chem Polymer posted 2004 sales of about $60 million. It employs 150.
Lederer said Chem Polymer will operate as a separate unit within Teknor, with its own sales force. Chem Polymer management, including President Evan DeWulf, will remain with the firm. Teknor's research and development and color expertise will benefit Chem Polymer customers, DeWulf said in a news release.
About 60 percent of the firm's sales are in nylon-based compounds - more than half for automotive uses. Engineering resins like acetal and polybutylene terephthalate make up the rest.
The deal does not include a thermoset phenolic resin plant in Mexico City, which will remain with Oldbury-based investment firm Chem Polymer Group.
Teknor compounds specialty PVC, thermoplastic elastomers and color concentrates. It posted sales of about $500 million last year, including $300 million from plastics operations. Its sales grew 4-5 percent in 2004, Lederer said.