"Nor-Lake is an ideal acquisition for our food service equipment group that advances the goal of our restructuring and realignment programme to build larger operating units," said Standex president Roger Fix. "We are acquiring one of the most respected suppliers to the commercial refrigeration industry, which will increase the annual sales of our food service equipment group to more than $200 million.
"Not only are we reinvesting the proceeds from our recent sale of the Jarvis Caster division in a company that generates almost dollar-for-dollar equivalent revenue, but we are acquiring a business that better fits our growth strategy of differentiating ourselves from the competition by providing value-added customer solutions and engineered products."
Fix also believes that there is little overlapping of customers or distribution channels between Nor-Lake and Master-Bilt. He expects both divisions to continue to service their existing customers and grow their sales revenue.
"Nor-Lake is very well-positioned in our industry," said Duane Stockburger, vice president of Standex's food service equipment group. "Its ability to provide innovative, cost-effective, engineered products on a national and international scale has led to a strong customer list. Nor-Lake has long-standing sole or preferred supplier relationships with six out of the top 11 quick-service restaurant chains in the US - one of the industry's fastest-growing segments."
The addition of Nor-Lake broadens Standex's portfolio of products and services, and provides the firm with the resources to extend individual brands to national accounts. "The initial focus of our integration activities will centre on leveraging purchasing, product technology and manufacturing synergies and achieving operating efficiencies," said Stockburger.
Nor-Lake president DuWayne Bakke believes that the deal will consolidate Nor-Lake's position in the marketplace. "The cultural similarities between our two companies will enable a smooth transition that resonates well with our collective customers and suppliers. I am looking forward to joining Standex and participating in the integration of the two companies," he said.