Plaskolite Inc. is taking a big step in expanding its acrylic sheet offerings by acquiring the continuously processed sheet division of rival Lucite International Inc.
Plaskolite agreed to buy manufacturing plants in Olive Branch, Miss., and Monterrey, Mexico, for undisclosed terms. The Columbus, Ohio, firm said it expects to complete the deal by Aug. 1.
The purchase will double the number of production plants run by Plaskolite. The extra capacity will make the company more efficient and productive and give it the broadest acrylic sheet offerings in the industry, said Mitch Grindley, Plaskolite vice president of marketing and sales, in a telephone interview.
``Our dedicated leadership team will continue to seek opportunities that advance our position as an industry leader and innovator,'' Plaskolite President James Dunn said.
The facilities being acquired make acrylic sheet directly from monomer methyl methacrylate. Not included in the deal is Lucite International Inc.'s head office plant in Cordova, Tenn.
``This transaction signifies a new phase in our long-term relationship with Plaskolite,'' noted Ian Lambert, Lucite International Inc. chief executive officer, in a July 25 news release.
Lucite will continue to provide Plaskolite with methacrylate raw materials as it strives to expand the acrylic market through new product development and operating efficiencies.
Lucite International Inc.'s parent company, Lucite International Group of Southampton, England, has been up for sale by Charterhouse Capital Partners. Lucite officials could not be reached for comment on the sale of the two U.S. facilities and the proposed company sale. Lucite's global sales last year were about $1.5 billion while the U.S. subsidiary logged sales of $190 million in 2005.
Plaskolite, a private firm founded in 1950 with 2005 sales of $161 million, makes a wide range of acrylic and impact-modified acrylic sheet, roll-stock acrylic, polystyrene sheet and mirrored sheet, acrylic resin and lighting panels. Its production plants are in Columbus and Zanesville, Ohio.