Xaloy enhances consolidation strategy with purchase
Canadian PlasticsCanadian Plastics
Barrel and screw manufacturer Xaloy Inc. has acquired New Castle Industries, a manufacturer of screws, barrels and...
Barrel and screw manufacturer Xaloy Inc. has acquired New Castle Industries, a manufacturer of screws, barrels and heat-transfer rolls for customers primarily based in North America. Xaloy purchased the Pennsylvania-based company for $17 million. In 2002 New Castle Industries had total sales of $24.6 million.
According to a release, Xaloy and New Castle management plan to consolidate manufacturing capacities and look for synergies in the sales and administrative areas.
Walter G. Cox, CEO of the Xaloy Group, said: "New Castle’s substantial business and expertise in extruder screws fits extremely well with our strength in injection molding screws. Second, this acquisition gives us a high-level entre into the roll business with New Castle’s three well-respected brands. Finally, the acquisition opens the way for reducing excess production capacity for machine components in North America."
The New Castle deal comes after Xaloy purchased Spirex Corporation’s twin-barrel business during the past year.