April 3, 2007

Roth Global Plastics, Inc. Acquires Fralo Plastech Manufacturing, LLC Assets

Roth Global Plastics, Inc., a 100% subsidiary of Roth Industries North America, Inc. and sister company of Roth Industries, Inc., is happy to announce that it has, in mutual agreement, acquired all assets of Fralo Plastech Manufacturing LLC, located in Syracuse, NY. Fralo Plastech Manufacturing, LLC, is owner-operator of the world’s largest blow-mold machine and is the industry leader in innovative blow-mold technology for the onsite waste treatment industry.  Products include polyethylene septic, holding, potable water tanks, risers, and other onsite treatment accessories.  Fralo’s process utilizes a patented multi-layer co-extrusion technology offering superior design characteristics, seamless construction, performance, and longevity. 

This decision made a lot of sense due to similar core competencies of both companies and the therefore provided synergies, from which all involved parties will benefit. Roth Industries, Inc. parent company is headquartered in Germany, and has over 40 years of septic tank experience, making this move in line with Roth overall international strategy. “This acquisition is in line with the Roth Group’s overall strategic planning of concentrating more toward environmentally friendly and energy saving technologies and products” states Manfred Roth, the owner of the Roth Group.

Jochen Drewniok, the CEO of Roth Industries, Inc. and Roth Global Plastics, Inc. says that Fralo does produce the best septic tanks in the North American market and, since Roth Industries, Inc. use the same advanced technologies producing the Double-Wall Oil Storage Tanks, many sales, distribution and product development synergies will surface.

Roth Industries Inc., North Kingstown, RI is known for its Double-Wall Oil Storage Tanks, Radiant Heating and PEX-c Plumbing Systems. It is a leader in innovation, always focusing on environmental friendly technologies. Having been in the North American market for over 10 years, Roth Industries, Inc. invested in a production facility with a blow molder, which uses the same advanced technology as Fralo, in Watertown, NY in 2006. Since 2007 all Double-Wall Oil Storage Tanks are made in the US.

The management of Fralo Plastech Manufacturing, LLC is very excited about the new ownership of the company.  “This acquisition brings a strong complement of skilled, knowledgeable, and talented employees with exceptional manufacturing and technology capabilities,” said Joseph Brown, VP of Sales and Marketing for Fralo Plastech Manufacturing, LLC.  “The current manufacturing and administrative facilities will remain in Syracuse, NY, as this will be the main headquarters of Roth Global Plastics, Inc.”.  In addition, Roth will retain all Fralo sales management and manufacturer reps in the field and will continue business as usual producing tanks and accessories.  “Our wholesale distributors should not experience any changes in the way they do business with Fralo as this acquisition will lead to even more product portfolio opportunities”, said Brown.