DECKERVILLE, Mich.—Midwest Rubber Co. has reached an agreement to acquire Xccent Inc.'s Medical and Industrial Divisions.
Based in Wyoming, Minn., Xccent is a manufacturer of rubber and flexible products for the medical and industrial sectors. The firms signed agreements on Aug. 8 and will transfer the two divisions to Midwest Rubber's headquarters in Deckerville, Mich., according to Midwest Rubber's news release The transaction will allow Xccent to focus on its core business of fitness and playground equipment.
The purchase price was not disclosed. Midwest Rubber President Kenneth Jehle said in an email that Xccent's divisions manufactures products that contain about 95 percent polyvinyl chloride with the remaining 5 percent latex natural rubber.
“Xccent brings capability of greater size, equipment with greater precision controls, additional material compound formulas and customer base,” Jehle said. “The acquisition will allow Xccent to continue to focus on their core business of fitness and playground equipment while allowing us to increase our portfolio of business by expanding its reach in the medical and industrial sector.”
Midwest Rubber said the move expands its reach in the medical and industrial sector. Jehle said in a statement that the transaction will further establish Midwest Rubber as a leader in the rubber and flexible product industry, and one of America's few remaining latex dip molders.
Medical accounts for about 33 percent of the company's business, he said, with automotive and heavy-duty truck each about 23 percent and 10 percent focused on automotive aftermarket. The firm's remaining business consists of consumer goods, agricultural implement components and military components.
Jehle added the acquisition will bring 10 new jobs to Michigan. The firm has begun relocating Xccent's business from Minnesota to its facility in Deckerville. The executive added that Midwest Rubber projects the relocation to be finished on Nov. 16.
Xccent President John Mathiesen said in a statement the firm carefully selected Midwest Rubber as its best suitor, adding that the company offers the Xccent units additional process capabilities outside of vinyl and latex dip molding such as rotational molding and urethane foam molding.
Midwest Rubber designs, engineers and manufactures foam dipped, slush cast and rotational molded rubber and plastic parts for the automotive, medical, heavy duty truck, consumer goods and agriculture equipment industries. The firm was established in Detroit in 1946 and operates an 88,000-sq.-ft. facility in Deckerville with 102 employees at peak season.
The company produces gear shift boots and winter wiper hoods, among other products. Jehle said that of the compounds used, PVC accounts for about 50 percent, followed by neoprene at 15 percent and EPDM at 10 percent. The firm also works with polyurethane, silicone, natural rubber, low-density polyethylene and acrylonitrile butadiene styrene.