Latest from Business Management

photo © 226496518 mohd izzuan ros Dreamstime.com

Sponsored

Lamson & Sessions to sell PVC pipe business

Jan. 1, 2003
In a move to reduce its exposure to the volatility of polyvinyl-chloride resin pricing, Lamson & Sessions agreed to sell substantially all of its PVC

In a move to reduce its exposure to the volatility of polyvinyl-chloride resin pricing, Lamson & Sessions agreed to sell substantially all of its PVC pipe business assets and certain liabilities to Eagle Pacific Industries, Inc., in a deal worth $58 million. Lamson & Sessions is getting out of the PVC pipe business to focus on its electrical and cable management products, the company says.

Lamson & Sessions' Carlon unit, which included the PVC pipe business, will continue to manufacture non-rigid pipe, flexible raceway systems for electrical and data, enclosures, surface raceway, switch and outlet boxes and electrical fittings and accessories.

Lamson & Sessions does not intend to sell its remaining business, says Don Gutierrez, corporate vice president for Lamson & Sessions and vice president of Carlon. "These (the remaining electrical and datacom products) are the products that really have been our priority products, either through new product development or through product enhancements," he says.

Lamson & Sessions was forced to sell the PVC pipe business because it was unable to compete with vertically integrated rivals. Eagle Pacific, in a separate transaction, agreed to acquire a polyvinyl-chloride resin plant from Condea Vista Co., a unit of RWE-DEA AG of Germany. Vertically integrating the PVC pipe business will help Lamson & Sessions, which becomes a minority shareholder in Eagle Pacific.

Lamson & Sessions' pipe business represents about 40% of its $272 million in 1997 sales. Eagle Pacific had sales of $71.7 million in 1997.

About the Author

Doug Chandler | Senior Staff Writer

Doug has been reporting and writing on the electrical industry for Electrical Wholesaling and Electrical Marketing since 1992 and still finds the industry’s evolution and the characters who inhabit its companies endlessly fascinating. That was true even before e-commerce, LED lighting and distributed generation began to disrupt so many of the electrical industry’s traditional practices.

Doug earned a BA in English Literature from the University of Kansas after spending a few years in KU’s William Allen White School of Journalism, then deciding he absolutely did not want to be a journalist. In the company of his wife, two kids, two dogs and two cats, he spends a lot of time in the garden and the kitchen – growing food, cooking, brewing beer – and helping to run the family coffee shop.

Sponsored Recommendations