Katy Industries Inc. has acquired the plastic shelving and cabinet business unit of Centrex Plastics LLC including the lease of its Tiffin, Ohio, manufacturing facility.
According to an April 13 Securities and Exchange Commission filing, Continental Commercial Products LLC, a subsidiary of Katy, made the acquisition from Centrex and T.R. Plastics LLC for $23.855 million in cash and a post-closing payment of not less than $2.3 million over three years.
Katy, a Bridgeton, Mo.-based manufacturer, importer and distributor of commercial cleaning products, also plans to collaborate with Centrex in the home storage products market. The collaboration includes sharing of best practices in advanced resin technologies and manufacturing processes, as well as product development, sales and marketing.
Centrex, an injection molder of consumer and commercial products, will continue to operate its remaining facility in Findlay, Ohio.
“The acquisition brings Katy a state-of-the art manufacturing operation, a growing line of home storage products and a mutually beneficial partnership with an innovative and technically proficient company. I look forward to working closely with the Centrex team and growing our business together,” said David Feldman, president and CEO of Katy, in a news release.
Katy markets its products under the Continental, Contico, Wilen and Fort Wayne Plastics brands. It has contract manufacturing facilities in Fort Wayne, Ind.; Bridgeton and Hazelwood, Mo.
Katy listed annual net sales in 2014 of $99.7 million, an increase of 27 percent over 2013. It credited the increase to the acquisition of Fort Wayne Plastics and increased demand at Continental.
Centrex got its start in 1926 as Central Rubber Reclaiming Co. As a custom molder, it focuses on automotive, heavy truck, consumer goods and packaging industries.