Building materials manufacturer M-D Building Products, Inc. will more than double its size with the acquisition of its competitor, South Carolina-based Loxcreen Company Inc.
Oklahoma City-based M-D Building has about 450 employees and annual sales of about $100 million. West Columbia, S.C.-based Loxcreen also has annual sales around $100 million and about 350 employees in the United States and Canada.
The terms of the acquisition were not disclosed on Wednesday. Both of the companies are privately held.
The acquisition will help boost M-D's vertical manufacturing abilities and grow its product line, M-D CEO Loren Plotkin said.
Plotkin is spending time touring some of M-D's manufacturing facilities this week and met with about 250 Loxcreen employees in Missouri on Wednesday.
Loxcreen will give M-D access to the Canadian market, as Loxcreen sells its products at various Canadian retailers, Plotkin said.
“They have a lot of different customers than M-D that will be new customers for us going forward,” Plotkin said. “It gives us a lot broader North American presence, where we had no presence in Canada whatsoever.”
The purchase also includes Loxcreen's Canadian flooring subsidiary Bengard Manufacturing based in Mississauga, Ontario.
MidFirst Bank is helping M-D to finance the Loxcreen acquisition, Plotkin said.
Loxcreen has the capacity to manufacture 30 million pounds of aluminum products each year, including building products such as storm doors and window screens. The company also has the ability to extrude up to 15 million pounds of plastic each year.
Loxcreen has manufacturing plants in South Carolina, Missouri, Ontario, Georgia and Oregon and distribution facilities in Texas, Ohio, Missouri and South Carolina.
The Loxcreen acquisition will compliment M-D's existing manufacturing and distribution centers in Oklahoma City and Georgia.
The sale to M-D made sense to Loxcreen, because of the two companies' similar histories and goals, Loxcreen CEO Wayne Parrish said in a statement.
“M-D Building Products has a rich history of engineering and manufacturing expertise and producing market-leading products, particularly in the weatherization category,” Parrish said. “The company is a superbly run operation, and they always have been a tough, but fair, competitor.”
M-D building products began in Oklahoma City in 1920 as the Macklanburg-Duncan Co.
Plotkin is the majority shareholder in the company and led a 2007 buyout of the founding Macklanburg family that had run the company for three generations.