Swiss industrial firm Georg Fischer AG is buying 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 Schaffhausen, Switzerland.
The deal is expected to close in January.
Harvel is 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 Easton and in Bakersfield, Calif. The firm is a leading supplier of PVC and chlorinated PVC pipes for industrial applications, mainly in water treatment and chemical processes.
Harvel now will be part of Fischer's GF Piping Systems unit, which operates a plant in Little Rock, Ark. The unit is a global supplier of plastic piping systems and has annual sales of almost $1.3 billion.
Fischer CEO Yves Serra said in the release 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 a separate news release, Detrex President and CEO Tom Mark said 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.”
“The sale,” Mark continued, “serves to strengthen Detrex's financial condition, maximizes shareholder value and better positions Detrex as a specialty chemicals company.”
Harvel was founded in 1964 and opened its California site in 1998.
News of the sale had a major impact on Detrex's per-share stock price Dec. 1. The price was near $14 in late over-the-counter trading Dec. 1 — a jump of more than 50 percent from its opening price.
Harvel accounts for more than 60 percent of Detrex sales. The business posted sales growth of almost 18 percent in the first half of 2011.