Increasing its presence in U.S. coatings markets, Fujichem Inc. is acquiring plastics coatings specialist Red Spot Paint & Varnish Co. Inc. of Evansville, Ind.
Fujichem agreed to pay $63.2 million for Red Spot in a deal expected to close May 30, said Red Spot Chief Financial Officer Stephen Halling.
Fujichem is a U.S. subsidiary of Fujikura Kasei Co. Ltd. of Tokyo. Fujikura and Red Spot have developed products and markets jointly since 1972. In their alliance, Red Spot handled markets in the Americas while Fujikura focused on Asia. Another alliance partner, Sonneborn & Rieck Ltd. of Essex, England, handles European sales.
Red Spot makes ultraviolet-light-curable, waterborne and urethane plastics coatings at plants in Westland, Mich., and Evansville. The firm claims to be a leader in coatings for automotive forward lighting and laser etch buttons. More than 50 percent of its sales are generated outside the United States. It will operate as a consolidated subsidiary of Fujichem.
Both firms will serve the Big Three automakers and Japanese transplants in North America.
``The integration of two companies positions Red Spot under the Fujichem umbrella to grow and provide expanding opportunities for our people,'' said Red Spot Chairman, President and Chief Executive Officer Charles Storms in a news release. ``The deep personal relationships between our respective employees and customers will assure a successful entry into the Americas for [Fujikura].''
Fujikura makes acrylic resins and derivatives. Coatings are one of its four business segments.