Resin distributor Rapid Industrial Plastics Co. Inc. of Jersey City, N.J., has grown by buying PolAmer Inc., a polypropylene distributor based in Roswell, Ga.
``We recognized polypropylene as a key strategic area where we should be,'' Rapid Chief Operating Officer Wayne Ackerman said in a recent phone interview.
No purchase price was disclosed in the deal, which will result in PolAmer President Bill Armgard and executives Jesse Hornsby and Melissa Dykes joining Rapid. Armgard found PolAmer in 1993.
Ackerman declined to cite a sales total for PolAmer, but said Rapid posted sales of $200 million in 2004. Rapid primarily is a distributor of polyethylene and PP that works with most major suppliers of those materials. Even after the PolAmer purchase - which closed March 23 - Rapid will do the majority of its sales in PE.
Rapid also operates a custom molding operation in Jersey City that makes containers and brings in about 10 percent of overall sales. Rapid owns its own warehouses in Jersey City, Texas, California and Ontario. The firm - which employs 200-250 - sells into most plastic end markets, including film, blow molding and injection molding.
Rapid will remain on the lookout for future purchases, Ackerman said.
``Consolidation is what's happening to the industry,'' he added. ``We're looking to be a more significant player in the market.''
Although Rapid wants to grow geographically, Ackerman said the firm has no plans to change its product mix. ``We've reviewed that time and time again,'' he said. ``We always decide to stay with what we do best.''
Ackerman added that the PolAmer deal marks Rapid's first acquisition in 20 years.
