Houston-based Westlake Chemical Corp. will acquire the parent company of Dimex LLC, a Marietta, Ohio-based manufacturer of recycled compounds and products with annual sales of about $100 million.
Founded in 1991, Dimex makes consumer goods including landscape edging, marine dock edging, masonry joint controls and matting for industrial, home and office uses.
In 2000, Dimex also launched a division specializing in recycled flexible PVC, thermoplastic elastomer and polyethylene compounds used to manufacture its products and to sell to other companies to meet green initiatives.
Dimex grew to be one of the largest U.S. processors of recycled plastic materials, according to Robert Buesinger, Westlake's vice president of vinyl products.
"Westlake's pending acquisition of Dimex underscores the company's longstanding commitment to stewardship of the environment and recycling, and to taking actions that contribute to a sustainable, circular economy," Buesinger said in a news release.
Westlake is a $7.5 billion company that manufactures petrochemicals, polymers and building products, such as vinyl siding, windows, doors, fencing, decks, railing and corrugated pipe.
With $1.4 billion in extrusion sales, Westlake is the fourth-largest North American pipe, profile and tubing producer, according to Plastics News' latest ranking.
Dimex's use of its compounds in its own products made it attractive, Buesinger said.
"[The] company is uniquely positioned to understand its customers' needs and to provide the engineering, manufacturing and distribution capabilities to meet those needs quickly and effectively. We look forward to welcoming Dimex and its approximately 300 employees to the Westlake family of companies," Buesinger said.
Westlake is buying Dimex from private equity firm Grey Mountain Partners, which has owned it since 2013.
Since 2017, Dimex has secured 29 U.S. patents for its products, the release said. The company's list of product introductions includes No-Dig-brand landscape edging, MotionTex-brand fitness equipment mats and GrillTex-brand protective deck and patio mats.
The proposed transaction is expected to close during the second half of 2021.
Westlake has been in buying mode this summer. The company announced June 21 it is acquiring the North American building products business of Boral Industries Inc. for $2.15 billion. The unit of Australian construction giant Boral Ltd. produces roofing; siding, trim, shutters, decorative stone and windows with about 4,600 employees at 29 sites in the U.S. and Mexico.
Westlake officials said the Boral acquisition creates a stronger business with significantly increased scale, complementary product offerings and enhanced growth prospects.
Then, on July 6, Westlake announced a deal with Lasco Fittings Inc. to grow its portfolio of pipe and fitting products with injection molded PVC fittings.
Westlake President and CEO Albert Chao said ahead of an Aug. 3 earnings call that this is an exciting time for Westlake.
The company achieved record quarterly earnings as it continues to benefit from the global economic recovery and higher sales prices and margins. Quarterly sales reached $2.9 billion with a record profit of $522 million for the three months ended June 30.
The Boral and Lasco acquisitions totaled about $2.4 billion and set another stage of development and growth for Westlake, Chao said in a news release about the latest financial results.
"We believe in the growing secular strength of the housing, repair and remodeling markets, and these strategic acquisitions will provide new and complementary platforms and long-term growth opportunities for Westlake," Chao said. "Through these acquisitions, we can deliver greater value and convenience to our customers, which will create value uplift to our shareholders."