Milwaukee-based Jason Industries Inc. has sold its Metalex business to Chicago-based UPG Enterprises LLC for $5 million and the assumption of certain liabilities.
“The divestiture of Metalex further simplifies our portfolio to the remaining Osborn and Milsco businesses, Jason’s two pillars due to their market leadership, diverse sources of revenue and scalability,” Brian Kobylinski, chairman and chief executive officer of Jason, said.
Metalex has facilities in Libertyville, Illinois and San Luis Potosi, Mexico and around 200 employees. The business contributed about $39 million to Jason’s sales in the 12 months ending Sept. 27.
UPG, a group of diversified industrial companies focused on metals, manufacturing, distribution and logistics, plans to continue the Metalex brand. The company said the acquisition helps its strategy of moving further down the supply chain and expanding capabilities and products for current and future customers.
Jason has gone through substantial changes this year. In August, the company announced the divestiture of its fiber solutions, Janesville Acoustics.
At the same time, the company announced it would explore strategic alternatives, including the potential sale of Jason Industries. In its November earnings release, the company said the evaluation process was underway and that there were no developments to disclose.
Friday’s press release announcing the Metalex deal did not provide any update on the strategic alternatives process.
The sale of Metalex leaves Jason with two business: Osborn, a finishing business that supplies industrial brushes, polishing buffs and compounds and abrasives, and Milwaukee-based Milsco, which makes seating components for the motorcycle, construction industrial, lawn and turf care and power sports markets. Osborn generated nearly $207 million in revenue in fiscal 2018 while Milsco contributed $160 million.
