The acquisition road continues to be a busy one as it was announced today that North American based Quanex, owners of spacer bar manufacturers Edgetech, have acquired the HL Plastics Ltd, along with the whole of the Flamstead Holdings Ltd group, which includes other companies such as Wegoma Machinery Sales Ltd and Vintage Windows Ltd. Here is the full and official press release:
Roger Hartshorn and Bill Griffiths have jointly announced the acquisition of Flamstead Holdings Ltd, including HL Plastics Ltd, Wegoma Machinery Sales Ltd and Vintage Windows Ltd, in a deal with Quanex Building Products Corporation.
Quanex, a North American industry-leading supplier of cutting edge energy-efficient window and door systems and components with $600+ million in sales listed on the New York Stock Exchange, only acquires strong business partners that have a deep commitment to customers, are eager for growth and are considered technological leaders in the fenestration and related industries.
Its latest acquisitions certainly fit these criteria, with HL Plastics’ innovative Liniar PVCu range setting industry standards in thermal efficiency and Wegoma’s Supercut machining centre helping to improve window fabricators’ productivity.
Hartshorn commented:
“I am excited about our future with Quanex as I believe the combination of our outstanding companies will help to drive us even further forward and accelerate growth secured by a strong, financially sound industrial organisation.
“By remaining financially involved and continuing as Group CEO for a minimum of five years, I am ensuring it will be ‘business as usual’ for staff and customers alike.
“My commitment has always been to launch new and exciting products for the benefit of our customers, and to generate employment opportunities to stimulate the economy – and with Quanex resources behind us, we will unlock the potential to achieve even greater success.”
Quanex has a track record of success in the UK and European markets, having acquired Edgetech in 2011 and helped to take the company to new heights.
Quanex Chairman, President and CEO Bill Griffiths was on site at Flamstead’s headquarters in Derbyshire to help announce the news to staff at the three companies and answer any questions. He remarked:
“The businesses Roger and his team have built are a great fit with the Quanex philosophy and we’re delighted we’ve been able to agree a deal that includes his continued involvement for the long term future. We plan to work with Roger and his team to take the Liniar and Wegoma ranges to the next level through innovation and collaboration.”
Tarpey Harris Ltd and Flamstead Investments Ltd, the remaining companies in the Flamstead Group owned by Hartshorn, will see no change, with Roger reaffirming his commitment to the business and retaining overall ownership.
For more information about the Liniar range go to www.liniar.co.uk.
For more information about Wegoma machinery go to www.wegoma.co.uk.
Initial thoughts
Firstly, congratulations to Rodger and Bill on a successful take over. A company the size of Quanex, with the resources they have within the group, is surely a good thing for HL Plastics and the rest of the Flamstead group.
My other initial thoughts turn to the geography of the takeover. This is the third major acquisition of a UK company or group by an American organisation. In recent times there has been the acquisition of Door-Stop International by Masonite. In the past six weeks it was also announced that the UK arm of American super-group Masco is to purchase timber alternative pioneers Evolution. This completes a hat trick of purchases of British firms by American companies. I’ll be analysing this latest acquisition, as well as looking at the American angle, in a future post on DGB.
According to Street Insider, the purchase is a cash deal valued at around $145m or £93m at current exchange rates. That some serious muscle flexing by the Americans.
I wish all involved with the acquisition all the best going forward and hope that the deal is beneficial to everyone.
