Canadian pipe, fittings and process equipment maker Reinforced Plastics Systems Inc. is expanding its reach south, acquiring Non Metallic Resources Inc. and sister company Sealtech Inc. for an undisclosed price.
``In order to address the larger power markets we needed a bigger balance sheet,'' said John Webster, founder of the two acquired companies, in a telephone interview.
Webster, who owned the companies for 25 years, will continue as a consultant. He said the current management and employees will continue with the companies.
Non Metallic Resources manufactures engineered, custom-fabricated composite products including flexible reinforced plastic and dual-laminate piping and fittings, heaving ducting and composite panel products.
Sealtech provides field installation, maintenance and repair services. The two companies combine to serve power generation, chemical processing, pulp and paper and mining customers.
The deal was announced Aug. 19 by Richmond, Va.-based Boxwood Partners LLC, which served as exclusive adviser to NMR and Sealtech.
The two companies have about 150 employees and operate out of a 100,000-square-foot manufacturing facility in Mobile, Ala., according to Webster.
Robert Hawkins, vice president of sales and marketing at RPS, said that the companies have worked together on projects in the past and that the combination will provide a lot of synergies.
Hawkins said NMR offers thermoplastic and dual-laminate materials, as well as a process known as vacuum infusion technology.
Webster said NMR uses the process to make large industrial shapes and panels, which are used to make scrubber components in coal-fired plants.
RPS' legal name is Southfield RPS Holdings Inc. It is a Southfield Capital Advisors portfolio company, having been acquired in January. RPS is based in Mahone Bay, Nova Scotia, and operates eight facilities in the U.S. and Canada.
RPS provides custom corrosion-resistant composite products and services.