Aliaxis buys CPVC pipe, fittings assets from Johnson Controls | Plastics News

Oct 25, 2024

Brussels-based Aliaxis SA has acquired the manufacturing assets of Johnson Controls Inc.'s chlorinated PVC (CPVC) pipe and fittings business for residential and light commercial sprinkler systems for its Ipex brand.

The deal includes a comprehensive product portfolio for Ipex and the JCI Huntsville, Ala., manufacturing plant with extrusion capabilities for pipe and molding capabilities for fittings.

Established in 1985, the acquired Johnson Controls pipe and fittings business generates annual sales of about $100 million and employs more than100 people, according to an Aug. 13 news release about the deal.

Terms were not disclosed.

The acquired assets will be part of Ipex Group, an Aliaxis brand and company based in Canada with manufacturing facilities and distribution centers across North America and a U.S. headquarters, Ipex USA LLC, in Pineville, N.C.

With $1.68 billion in annual sales, Ipex USA is the fifth largest pipe, profile and tubing extruder in North America, according to Plastics News' latest ranking.

Aliaxis has been expanding through acquisitions in recent years and Johnson Controls has been downsizing.

In July, Bosch Group announced it would acquire Johnson Controls' global HVAC solutions division for residential and light commercial properties as well as 100 percent of the Johnson Controls-Hitachi Air Conditioning joint venture.

Meanwhile, Aliaxis has been in growth mode. The company acquired the manufacturing division of Valencia, Calif.-based Valencia Pipe Co. in May 2023 for $250 million to expand into the Western United States.

The Valencia deal brought Aliaxis production facilities in Kingman, Ariz., and Walla Walla, Wash., and a distribution center in Valencia.

Just prior to that transaction, in January 2022, Aliaxis acquired Harrington Corp., a Lynchburg, Va.-based producer of gasketed fittings.

The latest deal with Johnson Control will expand Aliaxis's presence in the southern U.S. in addition to expanding the product portfolio.

"This acquisition is our third in less than three years, helping us deliver on our growth strategy," Alex Mestres, Aliaxis Americas CEO and Ipex CEO, said in the release.

"It complements the other strategic investments we've made to expand our manufacturing, distribution and warehousing facilities across North America — all with the objective of better serving our customers to continue to be their partner of choice," Mestres said.

Ipex manufactures piping systems from ABS, PVC and CPVC for the municipal, irrigation, industrial, plumbing, mechanical, electrical and telecommunication sectors.

The JCI acquisition "makes great sense," according to Thierry Vanlancker, Aliaxis manager director.

"It is another step in providing more complete customer solutions in our product portfolio across the United States and brings extra potential for Aliaxis," Vanlancker said.

The transaction is expected to be completed in the coming weeks.

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