Illinois, US-based coated metal applications provider Material Sciences Corporation has announced the sale of a portion of its coil coating assets to Indiana, US-based coating company Roll Coater Inc.
Roll Coater purchased the coil coating machinery, related processing equipment, corresponding customer base and goodwill associated with Material Sciences' Plant 7 in Elk Grove Village, Illinois. Based on fiscal 2010 shipments, the associated business base includes approximately $28.6 million of general-line coil coated products. Roll Coater paid $10 million in cash for the assets.
In addition, Material Sciences and Roll Coater entered into a multi-year lease agreement to store the purchased equipment. The transaction did not include the sale of any real estate by Material Sciences.
As part of the agreement, Material Sciences will not develop, manufacture or sell general-line coil coating products in some North American markets for five years starting from no later than June 11, 2010. Material Sciences still retains the right to provide some coil coated products to specific customers.