In a move to grab a share of the fast-growing Western market, Monroe, N.C.-based Charlotte Pipe and Foundry Co. has agreed to buy Standard Pipe Co., a $25 million ABS pipe maker in Salt Lake City.
Charlotte Pipe will gain two extrusion plants, in Salt Lake City and Las Vegas, as part of the transaction. Company officials declined to disclose the transaction's value.
The deal is scheduled to close in the next week, and is aimed at investing in the West, said Charlotte Pipe marketing director Bradford Muller.
``We're confident that the market is going to remain robust for years to come and that demand will remain high for pipe and fittings in construction,'' Muller said in a July 24 telephone interview.
Standard principal Dennis Reese will not remain with the company once the sale has closed, Muller said, declining to elaborate. Reese was unavailable for comment.
The lion's share of Charlotte Pipe's business is in plumbing applications for PVC pipe, though it also processes ABS. Officials declined to say what percentage of their business is in ABS.
Muller said the acquisition does not represent an effort to invest in ABS, which is simply the material of choice for many plumbing contractors in the West.
Charlotte Pipe has extrusion facilities in Monroe; Wildwood, Fla.; Cameron, Texas; Huntsville, Ala.; and Muncy, Pa. The Standard acquisition increases its extrusion plants to seven. Charlotte Pipe officials would not disclose the square footage of the Standard facilities.
Charlotte Pipe bought Huntsville-based injection molder Thompson Plastics Inc. about 1½ years ago.
Charlotte Pipe sold nearly $300 million worth of pipe last year, according to Plastics News' ranking of pipe, profile and tubing extruders.