Tank Holding Corp., the largest rotational molder in North America, continued its 2019 buying spree by announcing Nov. 18 that it has acquired Chem-Tainer Industries Inc.
The deal gives Tank Holding a bigger share in the market for rotomolded chemical containers and moves the company into new markets. Terms of the deal, which was announced Nov. 18, were not released.
Chem-Tainer generates an estimated $50 million in sales.
Tank Holding is already by far the biggest North American rotomolder, according to Plastics News data, with 2018 sales of $282 million.
Before the Chem-Tainer acquisition, Tank Holding said it employed about 700 people at 24 manufacturing locations in North America. Chem-Tainer brings nine more rotomolding factories, two of which are in states where Tank Holding also runs plants: Illinois and California. A Tank Holding spokesman said the company will continue operating eight of the nine Chem-Tainer plants. Chem-Tainer's small, one-machine plant in Fairfield, Texas, will be consolidated into the Tank Holding factory in that same city, the spokesman said.
Chem-Tainer's rotomolded products include double-wall containment tanks for holding chemicals, spill containment systems water tanks and septic tanks.
"The Chem-Tainer product lines, manufacturing footprint and dedicated personnel will greatly enhance Tank Holding's supply proposition to our existing tank and container customers, as well as enable us to expand our market position in more material handling applications, which is an important part of our growth strategy, going forward," Tank Holding CEO Greg Wade said.
Chem-Tainer is the fifth acquisition in about a year by Tank Holding, which is owned by private equity firm Olympus Partners.Tank Holding officials said Chem-Tainer is the first deal over that time period "to include product lines not traditonally defined as rotomolded tanks and containers," part of the company's move to further diversify into other product segments and end markets. Examples of those broader markets include laundry linen products, tilt trucks and other non-tank rotomolded product lines, the Tank Holding spokesman said.
In July, Tank Holding bought the assets of three U.S.-based plants from Mexico-based rotomolder Grupo Rotoplas SAB de CV.
Other recent deals include Bushman USA's water tank line in November 2018; two related rotomolders in Austin, Texas, in June; and Humboldt Rotational Molding of Fortuna, Calif., in a deal that closed in December 2018.
