Viking Polymers LLC has acquired fellow compounder Hughes Processing Inc. for an undisclosed price.
Jamestown, N.C.-based Viking and Hughes, based in Costa Mesa, Calif., had worked together since 2004 on a variety of custom compound formulations, the companies said in a Sept. 1 news release.
Hughes' Costa Mesa facility closed in early July, and the firm's two twin-screw extrusion lines were moved to Viking's plant in Jamestown. Viking now operates more than 10 single-screw, twin-screw and mixing lines, said John Ammondson, Viking's president and majority owner.
The products acquired in the deal including a patented material based on acrylonitrile styrene acrylic are a natural extension of what we do, which is focus on high-quality custom compounds, Ammondson said in a Sept. 2 telephone interview.
Purchasing Hughes allows [Viking] to continue growing, he added.
The acquisition also includes Hughes' customer lists and its product formulations.
Hughes reported sales of $5 million in 2007, but Ammondson said its current annual total is less. He would not disclose Viking's sales.
Viking does most of its work in PVC, while Hughes' primary material is ABS. Viking also works with ASA, acrylic alloys, composite materials and chlorinated PVC in markets such as building and construction, industrial goods, aerospace and transportation.
Rod Hughes, who will remain with Viking as a consultant, formed his namesake company in 1973. He owned the firm with his son Thomas, who had served as president and CEO. Thomas Hughes has left the company but remains in the industry.
Viking was formed in 1994 when Ammondson and a partner acquired the assets of Higher Molding Co., which had operated for more than 30 years as a compounder of flexible PVC. Viking now employs 60 at a 79,000- square-foot plant.
The acquisition of Hughes is the first for Viking since it bought the merchant compounding business of Kleerdex Co. LLC in 2002.
Viking's largest end market is building and construction. Although that sector has struggled, sales have seen some bounce this summer, according to Ammondson.
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