National City, Calif.-based Health Environmental Research Co. Products Inc. has signed a definitive agreement to purchase Houston-based Simplex Building Products Inc. for an undisclosed sum.
It will be the first of many acquisitions for HERC, which is traded on Pink Sheets, said Clifford Wright, chief executive officer of HERC and Simplex.
Simplex was founded two years ago with a focus on product design. The company will import its own proprietary products from Hefei, China-based Anhui GuoFeng Plastic Industry Co., including wood-plastic composite lumber and vinyl profiles. Anhui GuoFeng is certified by the American Architectural Manufacturers Association.
Simplex will sell PolyTimber-brand fence, deck and railing products, Wright said in a Dec. 28 telephone interview.
As the newly appointed CEO of HERC, Wright is charged with growing the company via acquisition and getting it listed on the Nasdaq national exchange, he said. He plans to make two more acquisitions within the next 90 days, but said these would not be directly plastics-manufacturing related.
HERC serves the infrastructure industry for several sectors - water and gas distribution as well as storm water and sewer water collection - by providing maintenance and rehabilitation services.
Simplex will be the exclusive North American distributor of Anhui GuoFeng's products, Wright said.
The composite fence, deck and railing products are made from recycled high density polyethylene and wood flour and are 100-percent inspected in the plant.
``The acquisition of Simplex provides HERC with additional product lines that will generate demand both within our existing markets and create the opportunity to substantially expand our presence in the consumer marketplace,'' said HERC Chairman Steven Carl in a news release.