Owens Corning of Toledo, Ohio, has completed the sale of its Fabwel unit in two separate deals valued at $60 million total.
The Fabwel composite-panel business was sold to Joliet, Ill.-based Crane Composites Inc. for $38 million. That deal includes a molding plant in Goshen, Ind., and about 200 workers.
Crane Composites is the fiberglass-reinforced plastics division of Stamford, Conn.-based Crane Co. Crane already had operations in Goshen after buying Noble Composites Inc. for $72 million in 2006.
The other portion of the Fabwel business - an FRP lamination operation, a recreational vehicle door business and a metals fabrication operation - was sold to Euramax International Inc. for $22 million. The sale includes sites in Nappanee and Bourbon, Ind.
The completed deals were announced Sept. 17.
Norcross, Ga.-based Euramax, a privately owned building products giant, operates 72 plants in the U.S. and six in Europe. The company now has six plants in Indiana - the hub of the U.S. RV industry.
About 15 percent of the company's portfolio is in plastic products, said J. David Smith, Euramax chairman, president and chief executive officer.
While Owens Corning is looking to divest its noncore businesses, Euramax is looking to bolster its holdings outside of building products.
Euramax will roll the Fabwel business into its subsidiary, Amerimax Building Products Inc. of Plano, Texas, Smith said in a Sept. 19 telephone interview.
``We've been in the RV component business for four decades plus,'' he said. ``We were one of [Fabwel's] primary competitors. This was an opportunity to expand our operations and expand our efficiencies.
``This is not a divergent strategy. This has been a core part of our business for a long time.''
Euramax will continue to pursue acquisitions. Smith said there could be ``a few per year.''
There will be technology trading, back-office consolidation and savings, added efficiencies and savings on material purchases as a result of the deal, Smith said.
``This is a relatively significant acquisition for us,'' he said.
Euramax is owned by New York-based Goldman Sachs Capital Partners Inc. Euramax is approaching $1.5 billion in sales, Smith said.
In total, Fabwel sold $179 million worth of goods in 2006.