Compounder Matrixx Group Inc. is expanding by purchasing Aclo Compounders Inc. of Cambridge, Ontario.
``Aclo is a great fit for us,'' Matrixx President Keith Rodden said in an Aug. 28 telephone interview. ``We both make flame-retardant compounds and sell into many of the same markets. We even competed in some Canadian markets.
``It's a good opportunity for us to grow and expand our geography. We've been wanting to get into Canada for awhile.''
Aclo was founded in 1964 and has had numerous owners since then; it's currently owned by Mitsubishi Corp. of Tokyo. The firm's products include flame-retardant compounds, blends and alloys, with about 60 percent of those products based on polypropylene. Aclo also uses polycarbonate, ABS and nylon resins.
Aclo has annual sales of around $20 million and employs 40. It operates 12 extrusion lines at a plant covering almost 100,000 square feet. The firm has exited toll compounding, which will allow Matrixx to transfer four to six Aclo extruders to other Matrixx sites.
Aclo management will remain in place, Rodden said. Mitsubishi also will remain an Aclo customer and supplier of raw materials, including polycarbonate and ABS. About 60 percent of Aclo's sales are in Canada, with the remainder in the U.S. and Mexico. Aclo serves the electrical/electronic, appliance and auto markets.
This is the second deal in three months for Evansville, Ind.-based Matrixx, a maker of color and additive compounds. In June, the firm acquired thermoset maker Bulk Molding Compounds Inc. of West Chicago, Ill.
Rodden said Matrixx is looking to make more acquisitions and plans to add thermoplastic compounding at BMCI plants in Mexico City or Ciudad Juarez, Mexico, within six months.
Matrixx is part of Citadel Plastic Holdings Inc., which is majority-owned by Wind Point Partners LLC of Chicago. Matrixx and BMCI have combined annual sales of about $250 million.
Blaige & Co. investment firm of Chicago advised Aclo and its shareholders on the deal.