Unifrax Announces China Investment
Original Press Release
Unifrax Announces China Investment
Press release date: April 8, 2014
Niagara Falls, NY – Unifrax I LLC (“Unifrax”), the Niagara Falls, N.Y. based manufacturer of specialty fiber products, announced today that through affiliates, it has entered into a Share Purchase Agreement to acquire a 29% stake in Shandong Luyang Share Co. Ltd. (“Luyang”) from Nanma Town Collective Asset Management Center of Yiyuan County and has concurrently entered into several agreements with Luyang to establish a strategic cooperation relationship between Unifrax and Luyang. This includes a technology license agreement that will allow Luyang to use certain Unifrax manufacturing technology. Unifrax is majority owned by affiliates of American Securities LLC.
Luyang develops, manufactures and sells a variety of refractory and insulation materials used primarily in China. Luyang is a leader in the Chinese marketplace and has been in business for 30 years. It is headquartered in Yiyuan County, Zibo, Shandong, China and has four manufacturing locations in Yiyuan, Xinjiang, Guizhou and Inner Mongolia and 69 sales offices across China. More information about Luyang can be found at english.luyang.com.
This investment and related agreements makes Unifrax, upon closing, the largest shareholder of Luyang and provides a framework for the companies to align their joint capabilities in the Chinese market. It also establishes Unifrax as the exclusive distributor of Luyang products in North America and South America, Europe, and India to drive improved growth and establishes a foundation for further collaboration in emerging markets.
David E. Brooks, Unifrax President CEO comments, “By leveraging the combined capabilities of Unifrax and Luyang, we will greatly improve our ability to serve customers in the growing Chinese ITM market.” Brooks adds, “Luyang has a great reputation in the markets it serves, a proud heritage and excellent people. Mr. Chengbin Lu, Luyang’s founder and Chairman, and his team have done an outstanding job of growing the Luyang business. They have built strong relationships with their customers and invested substantial capital to ensure they have the capacity and capabilities needed to consistently meet their customers’ requirements. We are excited to be part of the continuing track record of superb growth and success that Mr. Lu and his team have achieved.”
Unifrax I LLC is a leading global supplier of specialty fiber products that are used in many high- temperature industrial, automotive and fire protection applications where they save energy, reduce pollution, and improve fire safety. The Company has 28 manufacturing facilities in the United States, Europe, the Middle East, Russia, Asia, South Africa and Latin America and employs approximately 2,200 people worldwide.
American Securities, based in New York and with an office in Shanghai, China, is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion. American Securities has over $10 billion under management and is currently investing from its sixth fund. The firm traces its roots to a family office founded in 1947 to invest and manage a share of the fortune created from the growth of Sears, Roebuck & Co in the early 1900s. More information about American Securities can be found at www.american-securities.com.
Closing of the transaction is pending the satisfactory completion of remaining due diligence by Unifrax, Luyang shareholder approval and the approval of the relevant Chinese government authorities. Closing is expected to take place by year-end 2014.
For Further information, contact:
Unifrax I LLC
600 Riverwalk Parkway, Suite 120
Tonawanda, NY 14150
Phone: (716) 768-6295