Coating company Greenkote has completed the acquisition of the assets and certain liabilities of Industrial Powder Coatings (IPC), Inc.
Established in 1999 Greenkote offers metal coating services from its plants in Israel and Germany.
Founded in 1976, IPC is one of the largest custom coating companies in the U.S. IPC’s extensive service portfolio includes powder coating, e-coating, zinc and nickel chrome plating, and nylon and plastisol deposition (dip coating). IPC operates five plants in the Southern and Midwestern U.S. and Mexico. The company serves a vital role to many suppliers and OEM’s within the appliance, industrial and automotive markets throughout North America and has a strong competitive position in the highly fragmented, outsourced coatings industry. IPC’s sales revenue were $25 million in 2006.
Greenkote financed the purchase through U.S.-based debt and an equity placing in London via Charles Street Securities, Inc.
The North Amercian entity will trade as Greenkote-IPC Inc. Arie Laor the chief executive of Greenkote Plc will be relocating to the U.S. to lead the new enity.The board of Greenkote Plc is being enhanced with the appointment of Jim Thomson, the CFO of IPC.
Greenkote aims to capitalize on the core IPC operating and sales infrastructure to offer it’s proprietary technology into the North America and Mexico markets later in 2007. The new combined entity operating in the Americas is known as Greenkote IPC Inc..
The Greenkote coating process currently offered through its plants in Israel and Germany, improves the properties of a wide range of metals, alloys and powders by giving them added qualities such as increased resistance to both low and high temperature corrosion as well as improved wear resistance and better bonding to rubber and plastic. It is used mainly in the automotive, construction, medical, and aerospace industries.
“We are delighted that we have been able to acquire IPC. We believe that this acquisition will significantly accelerate the entry of our technology into the North American market and we will position Greenkote-IPC as a technology driven U.S. industrial company," said Greenkote’s CEO Arie Laor. "We look forward to continue IPC’s working relationships with personnel, customers and suppliers as we introduce the innovative Greenkote technology into the geographic and industrial markets served by IPC.”