Cambridge, Ontario-based Canadian General-Tower Ltd. has acquired the assets of two companies in France, AlkorDraka Industries and Alkor Medical Tubing, to add capacity for plastic films and increase its presence in Europe.
Founded in 1869, CGT started out making wagon wheels and ax handles. Over the last 150 years it evolved into topcoats and cover stocks for automotive seating and instrument panels as well as pool liners and building products like roof membranes and decking surfaces.
With estimated sales of $270m (€243m), CGT ranks No. 30 among North American film and sheet manufacturers, according to Plastics News' latest ranking.
CGT has manufacturing plants in New Braunfels, Texas, and Changshu, China, but its footprint in Europe was limited to a sales office in Lyon, France, until now. The acquisition gives CGT a manufacturing base in Europe and adds to its existing portfolio.
The two businesses, which were acquired from Vulcalux Nederland BV, have decades of experience in calendering, printing and laminating — and new names.
Montpelier, France-based Alkor Medical Tubing, which has been producing flexible films from a variety of materials for about 30 years, is now CGT Medical Products.
Terms of the acquisitions were not disclosed. CGT will retain the employees of both companies and make capital improvements to help them grow, CGT CEO Craig Richardson said in a news release.
"With the goal of increasing sales to our valued customers in both the industrial and automotive sectors, this investment will add to our capacity and geographic presence so that we can continue to serve our growing global customer base," Richardson said.
The two acquired businesses were part of the AlkorDraka Group along with DrakaPolymer Films, which makes vinyl film for office supplies.
Vulcalux was going to merge the polymer films business with Renolit Benelux BV, but the deal was called off during the antitrust investigation process, according to a 16 Jan news release, in part because Draka's customers came out in support of its products and services and the business did well in 2018.
Vulcalux officials hung onto DrakaPolymer Films and sold AlkorDraka and Alkor Medical. The holding company had acquired the medical tubing business in 2017 from Manudo Group.