Magnifoam buys stake in Leewood Elastomer

MISSISSAUGA, Ontario (Aug. 1)—Magnifoam Technology International Inc. has acquired 51 percent of Leewood Elastomer GmbH, a privately held maker and distributor of silicone elastomer products based in Bremen, Germany. Magnifoam is paying the equivalent of $1.76 million in shares and cash for Leewood, a 25-year-old company with operations in England, Finland, Sweden and Germany and annual sales of nearly $5 million, the Canadian company said. Magnifoam holds an option to purchase the remaining shares by 2005, and has pledged to invest $1.3 million in infrastructure and financing needs. Leewood processes and distributes semi-finished products to more than 3,000 customers in the aerospace, medical/pharmaceutical and other high technology industries, Magnifoam said. "This acquisition opens the European market to us and strengthens our silicone division, both of which are key objectives in our company´s growth strategy," said Robert Keto, Magnifoam president and CEO.