Teknor Apex Co. has purchased the inventory, customer lists and other assets of Velo International in a deal that will help Teknor broaden the scope of its matting business.
North Canton, Ohio-based Velo imported and marketed rubber and carpet matting for janitorial and sanitation applications, said John McGrath, vice president of Teknor's Commercial Products Division. Velo supplied products for building entrances, anti-fatigue applications and high-traffic work areas.
``The strength of Teknor Apex's current matting program has been concentrated in the food service sector,'' McGrath said. ``This acquisition enables us to accelerate our diversification and increase our share in the overall floor matting market, which has been growing steadily.''
Despite the different markets, he said Teknor will realize some benefits with the deal that will provide a broader range of matting products for the established customers of both companies.
Teknor will maintain separate catalogs and sales representatives for its industrial and food service matting lines, but some of the mats made by Teknor at its Pawtucket factory will be offered to Velo customers, which could result in some added volume, according to McGrath.
In addition, inventory from Velo's now-closed distribution centers in Georgia and California has been transferred to Teknor facilities in City of Industry, Calif.; Brownsville, Tenn.; and Pawtucket.
McGrath didn't disclose the terms of the agreement, which closed in December.
Velo's North Canton headquarters was shut down along with the two rented distribution centers. An undisclosed number of Velo employees lost their jobs at those locations.
The Teknor vice president said Velo was started several years ago by former officials of Akro Mats L.L.C.'s non-automotive matting business, which Collins & Aikman Corp. sold to Superior Manufacturing Group Inc. in 2001. The Akro executives set up supply agreements to import product from Asia and went into business as Velo International.
As with many small companies, McGrath said Velo lacked the necessary capital to keep up with its strong growth. ``They knew the size of Teknor Apex,'' he said. ``This matting business is not a large market, and Teknor Apex had bought some select mats from them. They came in with a proposal, and we wound up buying the assets.''
Teknor will use the same foreign suppliers as Velo to produce the mats for these markets. McGrath, who didn't release sales figures for either company, said the only potential additional employees at Teknor would come in warehouse or shipping jobs.