Acquisition adds UHMW-PE expertise

Edited by the Engineeringtalk editorial team Jul 1, 2005

Quadrant has signed an agreement with Menasha Corporation to purchase its Poly Hi Solidur business.

Quadrant has signed an agreement with Menasha Corporation to purchase its Poly Hi Solidur business, the world's leading manufacturer of ultra-high-molecular-weight polyethylene (UHMW-PE) semifinished products for machining and fabrication.

The transaction will be completed in August 2005.

This external growth step is the second-largest in Quadrant's history and significantly extends the company's product range and its lead in the market for engineering plastic products.

Poly Hi Solidur, based in Fort Wayne, Indiana, USA, operates production facilities in the USA, Germany, France, the UK, Japan and South Africa, and has dedicated R and D, sales and business development resources among its workforce of over 1000 employees worldwide.

In 2004, the company posted total sales of US $169 million, approximately two-thirds of which were generated in the USA.

UHMW-PE products display very high nonstick characteristics similar to Teflon and high resistance to corrosion from chemicals and to abrasive environments such as sand and slurries.

In machined and fabricated part form, their uses include applications in material handling, agricultural, power transmission and food processing machinery, as well as in medical devices, shipping and recreational equipment.

Poly Hi Solidur's branded UHMW-PE products include the well-known Tivar and QuickSilver trademarks.

Glen Steady and Michael Koch, the two co-CEOs of Quadrant Engineering Plastic Products (Quadrant EPP), commented on the benefits of the combined companies.

"Poly-Hi/Solidur's impressive materials' lineup and leading position in polyolefins fill a long-standing gap in Quadrant's global product line", saya to Steady, who is based at Quadrant EPP's North American headquarters.

"The two companies' products offer complementary performance levels for different applications in the major industries we both serve".

"The combination affords a single, far more complete product portfolio and range of value-added application solutions for the unique performance needs of equipment design and maintenance engineers".

Koch, who is located at Quadrant EPP's European headquarters, also added: "As is the case with Quadrant Engineering Plastic Products, market recognition and strong preference for Poly-Hi Solidur's major brands, including Tivar and QuickSilver is second to none in their field".

"This further strengthens our ability to offer the market a full line of shapes materials that are well-recognised for proven performance and quality in machined and fabricated components".

"This acquisition is another significant growth step for Quadrant in the context of our strategic focus on high-performance plastics", commented Arno Schenk, member of the Board and co-CEO of the Quadrant Group.

"Poly High Solidur is an excellent fit for us in terms of its products, complementary geographical presence, management and personnel, corporate culture and clear market leadership philosophy".

"Previously we held only a very limited position in UHMW-PE, but have always considered it a strategically important complementary product line".

"This acquisition does not just fill a gap in our product family, it does so with the global leader".

Mark Yde, Poly Hi Solidur President, outlined other opportunities for synergy.

"There is significant overlap in market segment focus and we share many of the same distribution partners".

"We have long seen the potential benefits of a merger of this type to these partners in areas such as transactions, logistics and joint development work in the field".

"In addition, marketing, sales and development resources can now be applied more effectively across a broader product line in the development of new business growth".