Custom thermoplastic extruder Pexco LLC is broadening its base in profile extrusions with the acquisition of RDC Cytex Inc., a Houston company specializing in point-of-purchase displays.
Terms of the deal were not announced, but it is the fourth and largest acquisition for Atlanta-based Pexco this year. In July, Pexco added custom profile extruder AllWest Plastics Inc. of Huntington Beach, Calif. Other purchases included Patrician Products Inc. of Hicksville, N.Y.; and Multitube Medical Devices SA de CV of Mexicali, Mexico.
RDC Cytec supplies some of North America's largest retailers with in-stock and custom extruded shelving accessories, including sign boards, shelf strip holders and banner hangers.
The deal will add to Pexco's retail and corporate brand offerings, as the company currently offers merchandising and custom extruded products under its trademarked AisleSmart name.
“Naturally, it fits us. We define our business as a custom-based extruder and apply it to a variety of end markets and Cytex is no different,” said Matt Robida, Pexco vice president of business development, in a telephone interview.
RDC Cytec has 70 employees in Houston and Evansville, Ind. Its Houston manufacturing site covers 122,000 square feet with 20 extrusion lines.
The company was founded in 1990 by David Burg, who was the seller and will serve as a consultant.
Robida said the Texas market is a great strategic fit for Pexco, and gives the company opportunities to offer other custom applications to the region.
He did not rule out other acquisitions, but said Pexco has an active pipeline and is working integrating the companies it has acquired in 2011.
Pexco is owned by private equity firm Saw Mill Capital LLC of Briarcliff Manor, N.Y., and currently operates 10 plants in the U.S. and Mexico. The company offers parts for aerospace, retail, traffic safety, medical, lighting and fence markets. It has custom design, engineering and fabricating services.
“Cytex is an impressive organization with strong customer relationships in one of the largest segments for profile extrusions,” Pexco CEO Neil Shillingford said in a news release. “We are excited about broadening our base for this consistent application as well as establishing a strategic presence in Texas for other growing extrusion markets.”