Fluorocarbon Gets 3 Units of British Firm for $86 Million

Fluorocarbon Co., the rapidly growing Laguna Niguel manufacturer of specialized rubber and plastics, on Monday reported the acquisition of three units of London-based TI Group, PLC for $86 million in cash.

The three units--CHR Industries of New Haven, Conn.; Dixon Industries of Bristol, R.I., and Bunnell Plastics of Mickleton, N.J.--had combined operating profits last year of $8.6 million and sales of $60 million.

The acquired units have been operating as part of TI Group’s U.S. plastics subsidiary, Bundy Corp. of Warren, Mich.

The companies make a variety of specialty rubber and polymer products used for electrical insulation, pressure-sensitive tapes, Teflon-coated fabrics and other applications.

Fluorocarbon Chairman Peter Churm said the acquisitions will complement the company’s existing businesses. “We could look for compatible companies for the rest of our lives and not find three like these.”

Through a combination of acquisitions and increased business, Fluorocarbon sales and profits have been growing rapidly in recent years. Not including the announced acquisitions, Fluorocarbon operates 26 plants in the United States, Canada and Europe and estimates sales of $245 million for the year ending Jan. 31.

Two years ago, Fluorocarbon had sales of $98 million. Last year, sales grew to $175 million.

With the latest acquisitions, the company is anticipating sales of $330 million for the upcoming year.

In November, the company reported record earnings of $2.5 million for the third quarter, a 70% increase over the same period a year earlier.

For the first 9 months of the fiscal year, earnings rose to $81 million from $4.1 million for the first 9 months of the previous year.

Fluorocarbon products are used in a wide variety of industries, including aircraft and aerospace, chemical processing, medical supplies, and automotive and truck equipment. Fluorocarbon shares closed Monday at $13.25 per share, up 25 cents for the day.