PAINESVILLE, Ohio—Federal Hose Manufacturing L.L.C. bought Marine Products International, an Eastlake, Ohio-based, company that provides rubber and plastic hoses to the recreational marine industry.
The acquisition is expected to add about $18 million of annual sales to the industrial hose business unit of Crawford United Corp., which owns Federal Hose Manufacturing.
The acquired company will continue to do business as MPI.
Founded in 1989, MPI distributes marine water system hoses. According to its website, the products are ideal for boat builders who seek hoses that demonstrate a resistance to heat, ozone, mild acids, bilge oils and engine water.
The MPI acquisition, finalized Jan. 1, brings a value-added distributor to Crawford United's industrial hose business, according to Brian Powers, the company's chairman, CEO and president.
The segment now consists of Federal Hose, which is both a manufacturer and distributor of hoses to a broad of range of industries, and MPI, which distributes hoses that its employees have cut, crimped and tailored to the needs of the recreational marine industry.
Powers didn't say how many people work for MPI, but he said all will be retained and positions could be added.
"The recreational boating market is a growth market around the world and we sell around the world," Powers said. "In good times and in bad, people still go fishing."
The release says the acquisition will be immediately accretive to earnings.
Crawford United acquired Painesville-based Federal Hose in 2016 from the privately held First Francis Company, Inc. According to its website, Federal Hose manufactures flexible interlocking metal hose, offers a line of branded silicone hose products, and distributes Europower hydraulic hoses and fittings.
Crawford United's other two business units serve the aerospace components and commercial air handling markets.
The three business segments posted sales of $68.6 million during the first three quarters of 2019 compared to $45.2 million for the same period in 2018. The 52 percent increase in sales was the result of the acquisition of CAD Enterprises and organic growth in other segments, according to a Nov. 12 news release from Crawford United.
Net income was $5.3 million.
At that time, Powers had said the company continues to actively seek strategic and opportunistic acquisitions.