Hi-Tach, formed in 1979 and based in Kannapolis, N.C., markets lubricants and a line of oil and fuel additives. As part of the purchase agreement, Industrial Enterprises acquired all of Hi-Tachs inventory, purchase orders, marketing materials, formulas and copyrights.
David Zazoff, director of corporate communications for Industrial Enterprises, told Lube Report the company acquired Hi-Tach because of the appeal of its entire additives and lubricants product lines. Hi-Tachs products are carried in independent auto parts stores, automotive chain stores, quick lubes and other retail outlets. Zazoff said Industrial Enterprises will retain the Hi-Tach brand name on the products.
Were going to go after selling some of our additional products into some of their retail outlets, Zazoff. And were going to use our retail outlets to expand their product offerings into our current distribution channels. Were going to embark on a cross-selling campaign.
In January 2006, Industrial Enterprises acquired Pitt Penn Oil, a compounder blender in Creighton, Pa., for $4 million. The Pitt Penn facilities will play a key role with the acquired products. Were going to bring the manufacturing of the product lines into the Pitt Penn facility in Pennsylvania, Zazoff said.
New York-based Industrial Enterprises products include motor oils, engine additives, brake fluids, appearance chemicals, antifreeze and charcoal fluids, along with gas dusters and refrigerant kits.
The company originally started in late 2004, acquiring EMC Packaging Inc., a refrigerant gases supplier that had been publicly traded. Industrial Enterprises later added Todays Way Manufacturing, a producer of specialty automotive products, and Unifide Industries Ltd., which markets and sells them. Zazoff said the companys most recent product acquisition was Fire First Defense, a hand-held fire suppressant.
The publicly traded Industrial Enterprises announced on Thursday it received approval for trading on Nasdaq, starting this week.
For 2006, the companys annual revenue for the fiscal year ending June 30 totaled $30.8 million. It recorded a net loss of $7.2 million. For its most recent quarter ending Dec. 31, Industrial Enterprises recorded total revenue of $17 million, with a net loss of $2 million.
According to a presentation at Industrial Enterprises Web site, Unifide Industries and Pitt Penn account for about 75 percent of the companys revenue. The EMC portion of the business accounts for the remainder.