Published: March 18, 2008 10:41 pm            

Fibro Chem Acquires Four Colors and Resource Solutions

Dalton-based Fibro Chem, a manufacturer of specialty chemicals designed for use in a variety of industrial applications, has acquired the assets of Four Colors and Resource Solutions, company officials said.

No job losses are expected, and Fibro Chem will continue to use the Four Colors and Resource Solutions facilities. All are on Kimberly Park Drive in Dalton.

Four Colors produces dyestuffs used in dyeing processes primarily within the carpet manufacturing industry, while Resource Solutions sells chemical auxiliaries used in the dyeing process.

Fibro Chem CEO Mike Hayes declined to provide the financial terms of the deal.

“We will be keeping all of the employees,” Hayes said, “and in fact are looking for added staff right now.” He said Fibro Chem (www.fibrochem.com), founded in 1975, had approximately 40 employees before the deal and that the company will now employ between 60 and 70.

“We expect this to not result in any layoffs,” Hayes said. “We will continue using all of the facilities that Four Colors and Resource Solutions had. They’re also located on Kimberly Park Drive, about 300 yards down on the other side of the road. They moved there last August. They were located downtown before that.”

Hayes said the leadership of Four Colors and Resource Solutions “are committed to stay. All of the management is committed to stay and that was critically important to us. We would not have been interested in the company without the management, who are outstandingly good people.”

Hayes said Fibro Chem’s customers include “pretty much all of the people that make carpet,” from the major players to “most of the minor ones.” He declined to provide annual sales and revenues figures, but said, “We grew quite nicely last year, despite the fact that the carpet industry is having some tough times. Our sales were very nicely higher, double digits higher on a percentage basis. In substantial measure that was because we have been diversifying to also serve customers outside of carpet, trying to use the technology that we developed for carpet to do other things. And then those companies (Four Colors and Resource Solutions) have grown very well also, and so we think we’ve put together two strong performers. ...

“This was not something that happened with two struggling companies, but with two good companies, thinking that we can be better together than we were separately.”

He said the moves will allow Fibro Chem “to provide a more complete range of products to our customers. For example, we’ve always sold dyehouse chemicals, but now the ability to supply the total package of dyehouse materials that the customer needs by including dyes will allow the customer to look to us to be responsible for the performance of their operations, moreso than they could have been by dyes from one source and the auxiliary chemicals from somebody else.”

In July 2007, Fibro Chem announced an acquisition agenda “to pursue strategic acquisitions that will support the company’s growth agendas in its foam control, silicones and esters segments.” Hayes said then, according to a news release on the company’s Web site, “Our long-range plan is to build a multifaceted specialty chemical business via both internal growth and carefully selected acquisitions. Over the next five years, we expect to achieve about half of our revenue from companies or product lines that we will acquire and about half via internal growth. ”

        

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