Wausaukee Composites Inc. is becoming a division of Sintex Industries Ltd., a plastics and textiles company based in Kalol, India, in a deal announced June 4.
No changes are anticipated, according to Dave Lisle, who remains president and chief executive officer of Wausaukee.
Sintex, which is publicly traded on the Bombay stock exchange, used a U.S-based holding company to buy an 81 percent stake in privately held Wausaukee. According to news reports in India, the price was $20.6 million.
The companies said synergies will allow both to expand their product portfolios.
Wausaukee, Wis.-based Wausaukee Composites already sells roughly one-fourth of its products to customers outside the United States, Lisle said in a news release. He added that Sintex will provide Wausaukee with ``cost-competitive manufacturing capacity in the high-volume production of structural composites components,'' and also a new range of products that Wausaukee can distribute through its existing sales channels.
Wausaukee makes highly engineered composite plastic and fiberglass components for various markets including industrial trucks and tractors, mass transit, medical imaging, commercial furnishings, therapeutic systems, wind energy and corrosion-resistant materials-handling products. It employs about 300 at its Wausaukee and Gillett, Wis., plants.
Lisle said Sintex is strong in compression sheet molding, rotational molding and blow molding. Those strengths bode well for Wausaukee, he added, and will allow it to offer products such as rotomolded fluid reserves to the U.S. market.
Wausaukee started a three-year expansion in 2006 and Lisle said the company expects to continue its North American growth ``to meet increased customer demand in our lower-volume, highly engineered custom molded product segments.''
Amit Patel, Sintex managing partner, said he also is optimistic about the two firms' synergies.
``Sintex, through this acquisition, will enter the world's largest composites market - the United States - and will also get immediate access to a number of Fortune 500 companies catered by Wausaukee. Sintex happens to be the first company from India to acquire a company in the North American composites plastics business. Post this acquisition, Sintex will introduce high-tech composite products in its electrical and automotive plastic segments as part of its custom molding business,'' Patel said in a news release.
Sintex has market capitalization of more than $620 million. It manufactures structural plastics products, electrical accessories, water storage tanks and prefabricated structures. Its plastics division was created in 1975. The company employs more than 1,000 at 10 plants across India.