Novatec Inc., a maker of drying and conveying equipment for the plastics industry, has reached an agreement that will see Reel Power Industrial Inc. acquire its downstream equipment products for extrusion lines.
In a press release, Novatec said the divestment allows it to focus on its core conveying, drying and moisture equipment solutions. Reel Power, based in Oklahoma City, sees the addition of these downstream products as a strong fit for the company, which offers downstream reeling, coiling and spooling solutions for several markets. The acquisition allows Reel Power to add pullers, cutters, and cooling tanks, providing a turnkey downstream package that increases the automation offering for improved productivity.
According to the press release, Conrad Bessemer, CEO of Baltimore-based Novatec, and Reel Power CEO Joe Henry believe their respective companies will benefit from this transaction, as it provides each with the ability to improve their strategic market focus and concentrate on well-defined, market-segmented business models.
