NEWMARKET, Ontario—AirBoss of America Corp. has reached an agreement to purchase custom rubber compounder Ace Elastomer Inc. in a deal valued at about $42.5 million.
Ace Elastomer has mixing facilities in Rock Hill, S.C., and Chicago, and will help boost AirBoss Rubber Solutions' (ARS) position in the North American rubber compounding market, according to a news release issued by Newmarket-based AirBoss. The deal is subject to customary closing conditions and is expected to be completed by the end of this year's third quarter.
Ace provides design, formulation development and custom mixing of proprietary elastomer compounds across the natural and synthetic polymer range. It serves a broad range of industries, including the roller, belting and printing industries, and for custom molding and extrusion applications.
AirBoss said Russell Foster, Ace's president, founder and majority owner, will remain in his current capacity following the close of the deal, as will the rest of Ace's existing management team.
"Ace specializes in colored rubber compounds, a key focus area of growth for ARS. We expect this acquisition to propel AirBoss into a market leading position in color and specialty compounding while providing immediate access to a customer-base in key targeted regional U.S. markets," said Chris Bitsakakis, AirBoss president and chief operating officer.
He added that AirBoss "will continue to assess further M&A opportunities that can complement our organic growth strategy by accelerating penetration of our color and specialty compounding business into key U.S. markets."