|
October 4, 2003 Spencer Coatings has acquired Eagle Industrial Paints, which is best known for the manufacture of industrial coatings for agricultural machinery. The Aberdeen-based manufacturers of paint and specialist industrial coatings has strengthened its industrial coatings business by acquiring the GBP 1.3 million turnover company from the receiver for an undisclosed sum. Eagle Industrial Paints was best known for the manufacture of industrial coatings for agricultural machinery. Sales to the agricultural sector curently account for less than 10% of Spencer's business and the acquistion could see this boosted to over 20%. As part of the deal, which was struck three weeks after the firm went into receivership, Sepncer has acquired Eagle's intellectual property, the paint formulations, customer records, the brand Farmline, all the stock and some of the assets including computerised machinery. Spencer will also employ one of the former directors of Eagle. The production of Eagle products will be moved to Aberdeen where production is due to commence in October. This further secures the manufacturing jobs in Spencer's facility in the city's Froghall Terrace. Spencer Coatings also acquired the business of Pearl Paints in North Wales in March this year which is expected to add GBP 1 million to the company's GBP 5 million turnover. This strategic acquisition added leading brand Wailes Dove Bitumastic to Spencer's impressive product range. The unique enamel product is a highly durable protective coating which has been used to coat ships hulls, pipelines and even the lock gates on the Panama Canal. More importantly for Spencer it has opened up a GBP 2 billion market in the water industry. Formerly known for its high quality decorative paints, Spencer Coatings increased its interests in industrial coatings, which now account for 80% of the business, and saw its turnover rise from GBP 3.5 million in 1995 to in excess of GBP 6 million in 2003. Phil Buck, Managing Director of Spencer Coatings says : "This is an excellent strategic deal for us which will builds on our core industrial business. In addition, the spray paint products for commercial vehicles will open up a new line of business for Spencer. "The consolidation of the paint market has led to a number of acquisitions and mergers of which we have taken advantage. Our ability to quickly react to these type of opportunities have enabled us to rapidly build turnover and a varied product range. The recent acquisition of Welsh company, Pearl Paints added significantly to our bottom line as well as opening up huge potential for us in the water industry." In the last three years Spencer has acquired Pearl Paints, Newton Industrial Paints and the Acothane brand which is a unique, high-performance, durable coating renowned for its longevity in harsh environments. They have also set up a joint venture in Shangdong, China to manufacture high technology coatings where they have seen sales double every year. Comments (0)No comments. |
Site Search |
