A foam and rubber manufacturer in the West Midlands has snapped up another company in the region. Walsall-based Alanto has acquired Ramfoam which is one of the º£½ÇÊÓƵ's leading polyethylene distributors and fabricators.
Alanto makes a diverse range of products for use across many sectors including marine, construction, automotive and electrical while Tividale-based Ramfoam manufactures products for use in fields such as aeroplane insulation and swimming devices.
The undisclosed deal will increase the newly enlarged group's annual turnover from £10 million to £20 million and more than double the size of its º£½ÇÊÓƵ workforce.
The buyout brings three additional local manufacturing facilities into the business, enabling Alanto to streamline its transport systems and reduce its carbon footprint.
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It also gives the business a footprint in the Middle East which will serve as a key market for future growth.
Kieran McCormack, chief financial officer with Alanto's Canadian parent company Jacobs & Thompson, said: "This is a transformative acquisition for Alanto, turbocharging the growth of our forward order book, expanding the range of products we offer to our customers and bringing new concepts to our service offering.
"While it is no secret that º£½ÇÊÓƵ manufacturing is continuing to face supply chain issues and labour shortages, we are determined to set clear targets to maintain our success."
The buyout deal was supported by a £3.8million loan from Lloyds Bank.
Relationship manager Rob Taylor added: "Building on its heritage as the º£½ÇÊÓƵ's manufacturing heartland, the West Midlands is continuing to attract investment from major global players like Jacobs & Thompson, with ambitions to expand their existing footprint in the region - a major boost for the local community.
"This acquisition also ensures the enlarged Alanto business can effectively capitalise on rising demand for its products both here in the º£½ÇÊÓƵ and in the Middle East while delivering significant value through operational and transport efficiencies."
