Milwaukee-based Jason Industries Inc. has acquired Chicago-based Matchless Metal Polish Co. but also continues its strategic review that could result in the sale of the company.
Matchless Metal Polish has around $8 million in annual sales. The company provides a full line of metal finishing products and services including buffing compounds, buffing wheels, abrasives and chemicals.
Jason paid $5 million in an all cash transaction to purchase Matchless and plans to integrate the company into its industrial segment within the Osborn business.
“Matchless reinforces our strategy to execute core tuck-in acquisitions that possess multiple facets of synergy,” said Brian Kobylinski, chairman and CEO of Jason. “Combining both Matchless and our recent Schaffner acquisition into our Industrial segment creates the widest range of technical polishing solutions available and firmly establishes Osborn’s leading position in the market.”
Jason acquired Pittsburgh-based Schaffner Manufacturing Co. Inc. in April 2019 for $11 million.
In August 2019, Jason announced it had engaged financial advisors to evaluate strategic alternatives for the entire company, including a potential sale. Since then, Jason has sold its fiber solutions and Metalex businesses.
“The evaluation process continues, and there are no further developments to disclose,” the company said in its fourth quarter earnings announcement Monday.
For the year, Jason reported net sales of $337.9 million, down 8.2% from last year. The decline was primarily attributed to weaker end markets.
“Weakness in global industrial markets and our core verticals along with additional reductions in OEM build schedules impacted our fourth quarter results,” Kobylinski said. “We continue to work to optimize the business through facility consolidations, cost reductions, and investments in targeted areas of growth and manufacturing efficiency.”
Jason reported a net loss from continuing operations of $43.4 million for the year, up from a $14.7 million loss in 2018.
