Metal treatment services provider Curtiss-Wright Corp. has bought the leading U.S. provider of solid film lubricant coatings, E/M Engineered Coatings Solutions, from Morgan Chemical Products Inc. The deal was valued at $21 million, including $16.7 million in cash and $4.3 million from receivables.
The acquisition includes six American plants that make more than 1,100 products for the automotive, industrial and aerospace industries.
We see this as offering a growth opportunity because it expands the product offering in our metals treatment operations, Curtiss-Wright spokesman Gary Benschip said. We expect that some of [E/M Coatings’] customers will be interested in our existing services.
E/M Coatings makes coatings that impart lubrication, corrosion resistance, and certain cosmetic and dielectric properties in applications where wet lubricants cannot be used due to high temperatures, extreme loads, wear, chemical corrosion or other adverse operating conditions. It has plants located in Chicago, Detroit, Minneapolis, Hartford, Conn., and North Hollywood and Chatsworth, Calif. The business employs 278 people and turned a profit of $3.3 million for the fiscal year ended Jan. 4, on sales of $26 million.
Curtiss-Wright Corp. is a diversified company that provides metal treatment services, such as shot-peening and heat treatment to strengthen and form metals. It also designs, manufactures and overhauls products for motion control and flow control applications.
Morgan Chemical is a subsidiary of Windsor, U.K.-based Morgan Crucible Co., a $1.5 billion manufacturer of technology-based materials and components. Morgan Crucible is in the fourth year of a restructuring program that has involved the sell-off of non-core businesses.