SCHAFFHAUSEN, SWITZERLAND (Dec. 1, 12:15 p.m. ET) — Swiss industrial firm Georg Fischer AG has bought PVC pipe maker Harvel Plastics Inc. in a deal valued at about $50 million.
Fischer will pay “approximately” $50 million in cash for Easton, Pa.-based Harvel, according to a Dec.1 news release from Fischer, which is based in
Harvel had been owned by Detrex Corp., a Southfield, Mich.-based supplier to the industrial and construction markets. Harvel employs 148 and has annual sales of more than $60 million, operating production plants in
Harvel now will be part of Fischer's GF Piping Systems unit, which already operates a plant in
Fischer CEO Yves Serra said in the release that Harvel “is an ideal fit for GF Piping Systems,” citing Harvel's highly regarded and leading industrial pipe range.”
“Joining the GF family will allow us to continue to expand our product line and further extend our reach, offering expert piping solutions throughout the global marketplace,” Harvel CEO Earl Wismer added in the release.
In a separate news release, Detrex President and CEO Tom Mark said that the sale “is a strategic move to capture the value of [Harvel], as market conditions have begun to favor full-scale global suppliers such as Georg Fischer.”
Harvel was founded in 1964 and opened its
News of the sale had a major impact on Detrex's per-share stock price on Dec. 1. The price was near $14 in late over-the-counter trading Dec. 1 – a jump of more than 50 percent from where it opened that day.
Harvel had accounted for more than 60 percent of the firm's sales. The business posted sales growth of almost 18 percent in the first half of 2011.