August 7, 2009
FOR IMMEDIATE RELEASE
Tyrolit acquires American abrasives manufacturer Radiac Abrasives
The Tyrolit Group has responded to the challenges of the global market by acquiring Radiac Abrasives. In these difficult economic times, this provides strength to Tyrolit's position in North America and internationally. The acquisition agreement was signed in July 2009 after constructive negotiations.
Radiac Abrasives
Radiac is the second largest manufacturer of bonded conventional and superabrasive grinding wheels in North America. Radiac operates four manufacturing facilities in the USA and Mexico. In 2008 Radiac achieved an annual turnover of USD 77 million with 400 employees. Headquartered in Salem, Illinois, the company consists of production centers, sales and representative offices at various locations in the USA, Canada, Mexico, Latin America, Ireland, and Poland. Radiac® will be retained as an independent brand and ideally complements Tyrolit’s portfolio in the US. Based on Tyrolit’s long-standing and sound technical expertise and our wide range of products, we expect to be able to leverage significant distribution synergies for the expansion of Radiac’s range.
Strategy consolidates market leadership and safeguards jobs
The new synergies in the areas of production, purchasing, sales, and customer service will open up new opportunities in the American market. Because of the considerable market size, the demand for abrasives in North America accounts for almost 25% of the global demand for abrasives. For many years, our industry has witnessed a constant process of consolidation in the abrasive market. The current economic crisis further accelerates this development. Tyrolit has accepted these challenges by actively pursuing this acquisition. By taking over Radiac, we safeguard the international future of Tyrolit.
Tyrolit has adopted an anti-cyclic strategy in the face of the current economic conditions. The takeover of Radiac is positive proof of our determination to implement our international strategy notwithstanding the present economic turbulences, confirming our company’s standing as a leader in the international abrasives industry.
While we are now one company, we will continue to offer product brands from both Tyrolit and Radiac. We will also continue to approach the market using the same channels that we currently have in place. Our focus on our distributor partners and our end users will remain our top priority. As we have additional news associated with the acquisition, we will communicate this directly to you.
FOR MORE INFORMATION CONTACT:
Jason Melcher
Jason.Melcher@tyrolit.com
(513) 458 - 8187
Vice President of Marketing, N.A.
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