SHEBOYGAN, WIS. (July 13, 2 p.m. ET) — In a deal that combines two leading suppliers of crosslinkable polymers for the wire, cable and pipe sectors, Saco Polymers Inc. has purchased AEI Compounds Ltd.
Saco, formerly known as Padanaplast USA Inc., is based in Sheboygan. The company was formerly a joint venture that was part-owned by Italian compounder Padanaplast SpA, but it now is an independent company.
AEI Compounds is headquartered in Sandwich, England, and had been a unit of TT Electronics plc, a global electronics company based in Weybridge, England.
Saco paid 8.6 million pounds sterling ($13.83 million) in cash for AEI, and the deal is subject to an adjustment, according to a news release from TT Electronics, which is publicly traded.
AEI will continue its current operations as a wholly owned subsidiary of Saco Polymers, and the senior management will remain with the business, according to a news release from Saco.
Both companies make crosslinkable polymer compounds based on Sioplas technology, which was developed by Dow Corning in the 1970s. The companies are focused on wire, cable and cross-linked polyethylene pipe customers.
AEI also makes thermoplastic and silane crosslinkable halogen-free flame retardant compounds for the wire and cable industry.
In 2009, AEI invested 2.5 million pounds sterling to relocate its manufacturing and technical operations to Sandwich. The investment included transferring the company's six compounding lines from its former plant in Gravesend, as well as adding a new line dedicated to production of low smoke and fume (LSF) grades for the cable industry.
The Saco news release calls the AEI acquisition “a key step in Saco's strategy to create the first truly global manufacturing and product development platform in this industry.”