Nylex Limited (NLX) today announced that it has spent $9 million on the acquisition of Australian Rotomoulding Industries’ (“ARI”) Plastank Pty Limited. The group explained that ARI is one of Australia’s leading manufacturers of plastic water tanks and systems with annual revenue of approximately $20 million.
Managing Director of Nylex, Mr Glen Casey said that the acquisition represents a significant milestone in the company’s recent history.
“ARI’s base earnings before interest and tax are around $2m, and synergies and sales growth are expected to boost the base earnings significantly.”
“Water conservation products have been identified as a major area of growth for the group in the strategic review which led to the group being honed down to four core divisions,” he said.
The acquisition is likely to allow Nylex’s industrial products division to expand dramatically its distribution and manufacture of water products across Australia.
This recent announcement follows hot on the heels of recent changes to water management legislation in Victoria and New South Wales that should provide further impetus for growth in the company’s products.
Mr Casey also announced Nylex had signed a number of exclusive distribution agreements for a variety of innovative water conservation solutions covering storm water retention, grey water recycling and water controls.
“In addition, we are negotiating to secure over twenty exclusive manufacturing and distribution agreements prior to a major launch of the our new ‘water conservation’ range in July 2004,” Mr Casey concluded.
