Jason Industries and Morton Global announced on Dec. 13 the sale of its Jason's Metalex business within its Engineered Components segment to Morton for approximately $5 million in cash, effective immediately.
Libertyville, IL-based Metalex is a manufacturer of expanded metal, perforated metal, perforated tubes, spiral tubes, filter mesh, grating and architectural metal. Founded in 1962 as Morton Manufacturing Company, Morton Global is a subsidiary of UPG Enterprises, an operator of a set of industrial companies focused on metals, manufacturing, distribution and logistics.
“The divestiture of Metalex further simplifies our portfolio to the remaining Osborn and Milsco businesses, Jason’s two pillars due to their market leadership, diverse sources of revenue and scalability,” said Brian Kobylinski, chairman and chief executive officer of Jason. “We thank our Metalex employees for their hard work and wish them continued success as part of the UPG organization.”
UPG said the acquisition significantly enhances its portfolio, both with a new suite of new products and with Morton's two facilities in Libertyville and San Luis Potosi, Mexico.
"We are excited to welcome Metalex and Morton to our portfolio," stated UPG co-founders Chris Hutter and Paul Douglass."The Morton name is synonymous with best-in-class rail products and innovation in the rail industry and we are looking forward to increasing R&D to accelerate new product development and light-weighting techniques for the rail industry. For Metalex, joining the UPG family will mean an increase in vertical integration synergies and speed to market. Access to new markets, expanded capabilities and larger geographic leverage are additional advantages."
The Metalex business being sold contributed approximately $39 million to Jason’s trailing 12-month sales ending Sept. 27. The Metalex operations in the United States and Mexico will be organized as a new subsidiary of UPG, and the approximately 200 employees will become employees of that subsidiary. UPG’s portfolio of companies offers best-in-class steel processing and production capabilities.
The company was advised on the transaction by BMO Capital Markets Corp. and Godfrey & Kahn, S.C.. The Metalex business will be reported within discontinued operations beginning in the fourth quarter of 2019.
Jason Industries is the parent company to a global family of manufacturers within the finishing and seating markets, including Osborn (Richmond, IN and Burgwald, Germany) and Milsco (Milwaukee, WI). Headquartered in Milwaukee, WI., Jason employs more than 2,200 people in 13 countries.