Skellerup spends US$1.1M for minority stake in US rubber company
By Paul McBeth
July 11 (BusinessDesk) - Skellerup Holdings has bought a 35 percent stake in Wisconsin-based liquid silicone rubber maker Sim Lim Technic for US$1.1 million.
Auckland-based Skellerup wants to take the technical expertise of the liquid silicone rubber maker to a wider market, saying the product is ideal for "sterile environments and use in high-precision medical and consumer products". The shares dipped 0.5 percent to $1.93, and are near the $2.07 record reached last month.
"We will combine the knowledge and reach of Skellerup and the technical expertise of Sim Lim to deliver high quality solutions to existing and new OEM customers," Skellerup chief executive David Mair said in a statement. "We have a strong focus on the US, as our largest market. Through our Gulf US business, we are seeing increasing opportunities for LSR products not only in the US but worldwide."
Skellerup refocused its industrial unit in recent years after a slump in oil and iron ore prices weighed on earnings, and now places greater emphasis on less volatile potable water and wastewater sectors. The company lifted first-half profit 31 percent and has previously indicated annual profit will be $24.5 million to $26 million in the June 2018 year.